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12.7 Utility Costs. The Board may elect that the costs of utilities must be assessed in
proportion to usage.

         12.8 Assessments for Judgment. Assessments to pay a judgment against the
Association pursuant to RCW 64.34.368(1) may be made only against the Units in the
Condominium at the time the judgment was entered in proportion to their Allocated Common
Expense Liabilities at the time the judgment was entered.

         12.9 Owner Misconduct. To the extent that any Common Expense is caused by the
misconduct of any Unit Owner, any Occupant of the Unit or any of the Owner or Occupants'
tenants, residents, guests, invitees, visitors, licensees, employees, agents or pets, the Association
shall assess that expense against the Owner' s Unit after notice and an opportunity to be heard.
Owner Misconduct shall include unfounded challenges to Board and Association decisions or
actions, whether or not litigation is commenced. Common Expenses assessed pursuant to this
Section shall include all related costs and attorneys' fees.

         The cost for repair or replacement of any damage to the Condominium, the Common
Elements, the Limited Common Elements, or any Unit in excess of actual insurance proceeds
received by, or to be paid to, the Association under the Association's policies of insurance and
the expense the Association incurs as a result of any such misconduct, including the
Association's deductible shall, after notice and opportunity to be heard, (a) be specially assessed
to the Unit, (b) be a lien upon the Unit, and (c) be a personal obligation of the Unit Owner and of
the tenant or occupant who engaged in misconduct.

         12.10 Reallocation. If Common Expense Liabilities are reallocated, Common Expense
Assessments and any installment thereof not yet due shall be recalculated in accordance with the
reallocated Common Expense Liabilities.

         12.11 Lien for Assessments.

                  12.11.1 Lien. The Association has a lien on a Unit for any unpaid Assessments
levied against a Unit from the time the Assessment is due.

                  12.11.2 Priority. A lien under Section 12.11 shall be prior to all other liens and
encumbrances on a Unit except: (a) Liens and encumbrances recorded before the recording of
the Original Declaration; (b) a Mortgage on the Unit recorded before the date on which the
Assessment sought to be enforced became delinquent; and (c) liens for real property taxes and
other governmental assessments or charges against the Unit. A lien under this Section is not
subject to the provisions of RCW 6.13 .

                  12.11.3 Mortgage Priority. Except as provided in Sections 12.11.4 and 12.11.5,
the lien shall also be prior to the Mortgages described in Section 12.11.2(b) to the extent of
Assessments for Common Expenses, excluding any amounts for capital improvements, based on
the periodic budget adopted by the Association pursuant to Section 12.1, which would have
become due during the six months immediately preceding the date of the sheriffs sale in an
action for judicial foreclosure by either the Association or a Mortgagee, the date of the trustee's

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