Section 5.07. Collection of Annual Assessments. From and after the first day of the first month following Close of Escrow for the first sale of a Condominium in the Project, the Board of Directors shall fix and collect from each Member his pro rata share of the Annual Assessments. Annual Assessments for fractions of any month involved shall be prorated. Grantor shall pay its full pro rata share of the Annual Assessments on all unsold Condominiums in the Project.

At the end of any fiscal year of the Association, the Membership may determine that all excess funds in the Operating Fund may be returned to the Members proportionately, or may be retained by the Association and used to reduce the following year's Annual Assessments. Upon dissolution of the Association incident to the abandonment or termination of the Project, any amounts remaining in any or the Maintenance Funds shall be distributed proportionately to or for the benefit of the Members.

Upon any voluntary or involuntary conveyance of a Condominium, the new Unit Owner (“Purchaser”) shall be jointly and severally liable with the previous Unit Owner (“Seller”) for all unpaid assessments levied by the Board of Directors against the Seller for his share of the Common Expenses up to the time the conveyance was Recorded, without prejudice to the right of the Purchaser to collect from the Seller therefor. However, any such Purchaser shall be entitled to a statement from the Board of Directors or the Management Agent of the Association, as the case may be, setting forth the amount of the unpaid assessments against the Seller due the Association; and such Purchaser shall not be liable for, nor shall the Condominium conveyed be liable for any unpaid assessments levied by the Board of Directors against the Seller in excess of the amount set forth in the statement; provided, however, that the Purchaser shall be liable for any such assessment becoming due after the date of any such statement. Notwithstanding the foregoing, any first Mortgagee or other Purchaser for value who obtains title to a Condominium pursuant to the remedies provided in the Mortgage or foreclosure of the Mortgage, shall not be liable for unpaid assessments or changes against the mortgaged Condominium which accrue prior to the time such Mortgagee acquires title to that Condominium.

Section 5.08. Capital Improvement Assessments. Should the Board of Directors determine the need for a capital Improvement or other such expenditure, the cost of which in the aggregate exceeds five percent (5%) of the budgeted gross expenses of the Association for the then current fiscal year, then the vote or written consent of at least a majority of the voting power of each class of Members, as provided herein, shall be required to approve and render effective a Capital Improvement Assessment levied by the Board of Directors to over the cost of such expenditure. Capital Improvement Assessments may be levied by the Board without the consent of the Members, if the aggregate cost of the expenditure does not exceed five percent (5%) of the budgeted gross expenses of the Association for the then current fiscal year.