Article IV. Covenants Concerning Assessments and Liens

This document extracts the pertinent information for the Meadow Oaks Homeowners Association covenants as filed with the the Office of the Register of Deeds of Sedgwick County, Kansas.   Official copies can be requested from the Office of the Register of Deeds of Sedgwick County, Kansas.

Article IV. Covenants Concerning Assessments and Liens

4.01 General Assessments. For the purpose of providing funds for the operation of the Association, and for the operation, maintenance, care and improvement of the Common Area, and to afford this Association the means and resources necessary to carry out its duties and functions, the Association shall have the right, in each year, to assess against each Lot in the Property a general assessment, which general assessment shall subject each Lot to a lien to secure payment thereof.

When an assessment is to be made hereunder, the Association will notify all owners stating the amount of the assessment and when payment is due; provided, in no event shall payment be due sooner than sixty (60) days following the notice of such assessment, whether general or special.

4.03 Limitations on General Assessments. The maximum annual assessment shall be $125.00 per Lot for any calendar year, except when a greater assessment is permitted by an affirmative vote of the majority of the Owners who are voting in person, or by proxy, at a meeting duly called for such purpose, or as otherwise provided below.

The maximum annual assessment may be increased each year not more than 5% above the maximum assessment for the previous year without a vote of the membership. Any such increase requires a majority vote of the Board.

4.04 Special Assessments. In addition to general assessments, the Association may, from time to time, at a regular meeting or a special meeting called upon notice for such purpose, establish a special assessment to be levied equally against each such Lot for the purposes contemplated hereunder.  No such special assessment shall be valid unless two-thirds of the Members present, in person or by proxy, at the meeting vote for it.  Any special assessments shall become a lien against each individual Lot in the same manner otherwise provided for in this Article.

Further, the Association shall have the authority to establish and fix a special assessment on any Lot to secure the liability of the Owner of such Lot to the Association for any breach by such owner of any of the provisions of this Declaration, which breach shall result in expenditure by the Association for repair or remedy.

Any special assessments shall be payable in full on the first day of the second calendar month next following the date that the same shall be established by the Association and shall thereafter bear interest until paid in full at the prevailing legal rate.

4.05 Collection and Expenditures. The Association shall have the sole authority to collect and enforce the collection of all general and special assessments provided for in this Declaration, and may, in addition to such assessments, charge and assess costs, including reasonable attorneys’ fees, and penalties and interest for the late payment or nonpayment thereof.  The Association shall have the authority to expend all monies collected from such assessment, costs, penalties and interest for the payment of expenses and costs in carrying out the duties, rights and powers of the Association as provided for in the Declaration and the Articles of Incorporation and Bylaws of the Association.  However, the Association shall not be obligated to spend in any year all the sums collected in such year by way of general assessments, or otherwise, and may carry forward, as surplus or in reserves, any balances remaining; nor shall the Association be obligated to apply any such surpluses or reserves to the reduction of the amount of the assessments in the succeeding year, but may carry forward from year to year such surplus as the Board, in its absolute discretion, may determine to be desirable for the greater financial security of the Association and the effectuation of its purposes.

4.06 Assessments and Liens; Delinquency. Thirty (30) days after any general or special assessment shall be due and payable, and unpaid or otherwise not satisfied, the same shall be and become delinquent and a lien on the Lot and shall so continue until the amount of said charge and assessment, together with all costs, penalties and interest as herein provided, has been fully paid or otherwise satisfied.

4.07 Notice of Delinquency. At any time any general or special assessment against any Lot has become a lien and delinquent, the Association may record in the office of the Register of Deeds, Sedgwick County, Kansas, a Notice of Delinquency as to such Lot, which Notice shall state therein the amount of such delinquency and that it is a lien, and the interest, costs, including attorneys’ fees, and penalties which have accrued thereon, a description of the Lot against which the same has been assessed, and the name of the Owner thereof, and such Notice shall be signed by an officer of the Association.

Upon payment or other satisfaction of said assessment, interest, penalties and costs in connection with which notice has been recorded, the Association shall record a further notice stating the satisfaction and the release of the lien thereof.

4.08 Enforcement of Liens. Each lien established pursuant to the provisions of this Declaration and which is specified in a Notice of Delinquency as herein provided, may be foreclosed in like manner as a mortgage on real property as provided by the laws of Kansas.  In any action to foreclose any such lien, the Association shall be entitled to costs, including reasonable attorneys’ fees, and such penalties for delinquent charges and assessments as shall have been established by the Association.

4.09 Subordination to Mortgages. Each and every assessment and lien, together with any costs, penalties and interest reserved under this Declaration, shall be subordinate to the lien of any valid bona fide mortgage which has been, or may hereafter be, given this Declaration.  Any subsequent Owner of any Lot purchased at foreclosure shall be bound by the restriction, assessments and liens set out in this Declaration, not including, however, any assessment or lien arising prior to the foreclosure sale.

4.10 Personal Liability. In addition to the covenants and agreements heretofore set forth herein, each Owner of each Lot, by the acceptance of a deed therefor, whether or not it shall be so expressed in such deed, shall be deemed to have agreed to be personally liable for the payment of each general or special assessment levied against such Lot in each calendar year during any part of which such Owner holds title to such Lot.