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insurance shall be payable in case of loss to the Association for all members. The Association 31 <br /> shall have the sole authority to deal with the insurer in the settlement of claims. Such insurance <br /> shall be obtained without prejudice to the right of each member to insure his personal property <br /> for his own benefit at this own expense. In no event shall the insurance coverage obtained by the <br /> Association be brought into contribution with insurance purchased by members or their <br /> mortgagees. <br /> 6. INSURANCE ASSESSMENTS. All insurance policy premiums on the Common <br /> Areas for the benefit of the Association purchased by the Board of Directors or its designee <br /> and any deductibles payable by the Association upon loss shall be a common expense, and the <br /> Association shall levy against each Lot equally as an additional annual assessment, (herein <br /> called "Insurance Assessment") which shall be in addition to the amounts provided for all such <br /> insurance premiums. <br /> Section 8. PENALTY ASSESSMENT. The Association may assess a penalty <br /> assessment against any Owner for violation of any provision of this Declaration or for violation of <br /> any rule or regulation promulgated by the Board of Directors of the Association. A schedule of <br /> penalty assessments to be assessed for a restriction violation or rule violations shall be <br /> established annually by the Board of Directors at their annual meeting and the collection of such <br /> assessments shall be enforced in the same manner as the collection of annual capital, special and <br /> insurance assessments. <br /> Section 9. NOTICE AND QUORUM FOR ANY ACTION AUTHORIZED UNDER <br /> SECTIONS 3 AND 4 IN THIS ARTICLE. Written notice of any meeting called for the purpose <br /> of taking any action authorized under Section 3 or 4 of this article shall be sent to all Members <br /> not less than thirty (30) days and not more than sixty (60) days in advance of the meeting. At <br /> the first such meeting called, the presence of Members or proxies entitled to cast two-thirds of all <br /> of the votes of each class of membership shall constitute a quorum. If the required quorum is <br /> not present, another meeting may be called subject to the same notice requirement and the <br /> required quorum at the subsequent meeting shall be one-half/ (1/2) of the required quorum at <br /> the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days <br /> following the preceding meeting. <br /> Section 10. DATE OF COMMENCEMENT OF ANNUAL ASSESSMENTS AND DUE <br /> DATES. The annual assessments provided for herein shall commence as to each Lot on the first <br /> day following the date of conveyance of the Lot by the Declarant or Developer to an Owner. The <br /> first annual assessment shall be adjusted according to the number of months remaining in the <br /> calendar year. The Board of Directors shall fix the amount of the annual assessment against <br /> each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of <br /> the annual assessment shall be sent to every Owner subject thereto. The due dates shall be <br /> established by the Board of Directors and the Board of Directors shall have the authority to <br /> require the assessments to be paid in pro rata monthly installments. The Association shall, upon <br /> -8- <br />