Page 31 - 018 Mutiny Bay - CCRs Second Amended Restated 2012 0605 REDUCED[2188]_Neat

ARTICLE 12. COMMON EXPENSES AND ASSESSMENTS

12.1 Estimated Expenses. Within sixty (60) days prior to the beginning of each
calendar year, or such other fiscal year as the Board may adopt, the Board: shall estimate the
charges including Common Expenses, and any special charges for particular Units to be paid
during such year; shall make provision for creating, funding and maintaining reasonable reserves
for contingencies and operations, as well as for maintenance, repair, replacement and acquisition
of Common Elements; shall take into account any expected income and any surplus available
from the prior year's operating fund; and shall follow the procedures for adopting the Budget as
provided in Section 10.3.3 . Without limiting the generality of the foregoing but in furtherance
thereof, the Board shall create and maintain from regular monthly Assessments a reserve fund for
replacement of those Common Elements which can reasonably be expected to require
replacement or a major repair prior to the end of the useful life of the Buildings. The Board shall
calculate the contributions to said reserve fund so that there are sufficient funds therein to
replace, or perform such major repair, to each Common Element covered by the fund at the end
of the estimated useful life of each such Common Element. If the sum estimated and budgeted at
any time proves inadequate for any reason (including non-payment for any reason of any
Owner's Assessment), the Board may at any time levy a further Assessment, which shall be
assessed to the Owners according to Section 12.3 . Similarly, if the sum estimated and budgeted,
and being collected and/or already collected, at any time proves excessive, the Board may reduce
the amount being assessed and/or apply existing funds (in excess of current needs and required
reserves) against future Assessments and/or refund such excess funds.

12.2 Payment by Owners. Each Owner shall be obligated to pay his or her share of
Common Expenses and special charges made pursuant to this Article to the treasury for the
Association in equal monthly installments on or before the first day of each month during such
year, or in such other reasonable manner as the Board shall designate. No Owner may exempt
himself or herself from liability for payment of assessments for any reason, including waiver of
use or enjoyment of any of the Common Elements or abandonment of the Owner' s Unit.

12.3 Allocated Liability. Except for Assessments under Sections 12.4, 12.5, 12.6, 12.7
and 12.9 all Common Expenses must be assessed against all the Units in accordance with the
allocations set forth in Exhibit B. Any past due Common Expense Assessment or installment
thereof bears interest at the rate established by the Association pursuant to Section 12.11.12.

12.4 Limited Common Element. Any Common Expense associated with the operation,
maintenance, repair, or replacement of a Limited Common Element shall be paid by the Owner
of or assessed against the Units to which that Limited Common Element is assigned, equally.

12.5 Only Some Units Benefited. The Board may elect that any Common Expense or
portion thereof benefiting fewer than all of the Units must be assessed exclusively against the
Units benefited.

12.6 Insurance Costs. The Board may elect that the costs of insurance must be
assessed in proportion to risk.

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