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108 <br /> Assessments,Declarant may elect to pay for each such calendar year that portion of the annual <br /> expenses of the Association(excluding any reserves)which exceeds the total amount of the Annual <br /> Assessments paid by the Owners other than Declarant. In addition,Declarant shall be entitled to <br /> credit against any Assessments on Lots owned by Declarant any and all amounts which Declarant <br /> has paid directly for common expenses, or has paid or contributed to the Association for the <br /> Association's payment of common expenses. <br /> Until the Turnover Date,the Declarant may elect on an annual basis,but shall not be obligated,to <br /> reduce the Annual Assessment for any fiscal year by payment of a subsidy(in addition to any <br /> amounts paid by Declarant pursuant to the immediately preceding paragraph),which may be either <br /> a contribution or an advance against future assessments due from the Declarant (if Declarant <br /> consents in writing to any such assessments),in the Declarant's discretion. Any such subsidy shall <br /> be conspicuously disclosed as a line item in the Association budget. The payment of such subsidy <br /> in any year shall under no circumstances obligate the Declarant to continue payment of such <br /> subsidy in future years. <br /> Section 9. Operating Capital Fund <br /> . At the time of closing of the initial sale of each Lot by Declarant to a third party purchaser,an <br /> operating capital payment shall be collected from the purchaser of such Lot(or,if Declarant so <br /> elects,from Declarant)and transferred to the Association to be used as a operating capital fund, <br /> which operating capital payment shall be in such amount that Declarant, while a Class II <br /> Membership exists, or the Board, following the termination of the Class II Membership, shall <br /> determine from time to time.The operating capital fund shall be used by Association for whatever <br /> purposes it deems necessary or desirable. Amounts paid into the fund shall not be considered <br /> advance payment of regular assessments. <br /> Article VI <br /> GENERAL ASSESSMENT PROVISIONS <br /> Section 1. Certificate Re ag rding Assessments <br /> . The Association or its agents shall,not more than ten(10)business days after demand therefor, <br /> and for a reasonable charge, furnish a certificate signed by an officer of the Association setting <br /> forth whether the assessments on a specified Lot have been paid. A properly executed certificate <br /> of the Association as to the status of assessments on a Lot is binding upon the Association and its <br /> agents as of the date of its issuance. <br /> Section 2. Effect of Nonpavment of Assessments;Remedies of the Association <br /> . Any assessment(or installment thereof)not paid by its due date as set forth herein shall bear <br /> interest from such due date at the rate of eighteen percent(18%)per annum or the highest rate then <br /> permitted by law,whichever is less. In addition to such interest charge,the delinquent Owner shall <br /> also pay such late charge as may have been theretofore established by the Board of Directors to <br /> defray the costs arising because of late payment. The Association may bring an action at law <br /> against the delinquent Owner(or foreclose the lien against the applicable portion of the Property), <br /> and interest,late payment charges,costs and reasonable attorney's fees related to such action or <br /> 15 <br />