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enforce his rights against any Unit and the Allocated Interest In the Common Elements
appurtenant thereto not so paid, satisfied, or discharged.

The Board, at its discretion, may detelmine the terms of repayment of any Loan Special
Assessment levied in accordance with this Section, including but not limited to, the date(s) on
which the Loan Special Assessment must be paid and the effect of any prepayment of part or all
of said Loan Special Assessment.

10.6 Association Records and Funds.

10.6.1 Records and Audits. The Association shall keep financial records
sufficiently detailed to enable the Association to comply with RCW 64.34.425 in providing
resale certificates. All financial and other records shall be made reasonably available for
examination by any Unit Owner, the Owner's authorized agents and all Mortgagees. At least
annually, the Association shall prepare, or cause to be prepared a financial statement of the
Association in accordance with generally accepted accounting principles. An annual audit by a
certified public accountant is required unless waived annually by Owners of Units to which sixty
percent (60%) of the votes are allocated.

10.6.2 Fund Commingling. The funds of the Association shall be kept in
accounts in the name of the Association and shall not be commingled with the funds of any other
Association, nor with the funds of any Manager of the Association or any other person
responsible for the custody of such funds . Any reserve funds of the Association shall be kept in a
segregated account and any transaction affecting such funds, including the issuance of checks,
shall require the signature of at least two persons who are officers or directors of the Association.

10.7 Association as Trustee. With respect to a third person dealing with the
Association in the Association's capacity as a trustee, the existence of trust powers and their
proper exercise by the Association may be assumed without inquiry. A third person is not bound
to inquire whether the Association has power to act as trustee or is properly exercising trust
powers. A third person, without actual knowledge that the Association is exceeding or
improperly exercising its powers, is fully protected in dealing with the Association as if it
possessed and properly exercised the powers it purports to exercise. A third person is not bound
to assure the proper application of trust assets paid or delivered to the Association in its capacity
as trustee.

10.8 Common Elements, Conveyance, Encumbrance.

10.8.1 In General. Portions of the Common Elements which are not necessary for
the habitability of a Unit may be conveyed or subjected to a security interest by the Association if
the Owners of Units to which at least eighty percent (80%) of the votes in the Association are
allocated, agree to that action; but all Owners of Units to which any Limited Common Element is
allocated must agree in order to convey that Limited Common Element or subject it to security
interest. Proceeds of the sale or financing are an asset of the Association.

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