RANCHO SANTA FE PROTECTIVE COVENANT

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RANCHO SANTA FE PROTECTIVE COVENANT

DECLARATION NO. 1 OF ESTABLISHMENT
of
General Basic and Local Protective Restrictions, Conditions, Covenants,
Reservations, Liens, and Charges Affecting the Property Known as
RANCHO SANTA FE
Which is Situated in the County of San Diego in the
State of California
(Recorded February 9th, 1928, in Book 1412, Page 436, Official Records of

San Diego County, California)
__________________

PREAMBLE

     COVENANT, made this 21st day of January, 1928, by the undersigned owners of property in and adjacent to Rancho Santa Fe, San Diego County, California.

     WHEREAS, the undersigned are the owners in severalty of the respective parcels of property, description of which is set immediately above their signatures hereto, and

     WHEREAS, Rancho Santa Fe is unusually attractive and valuable as a high class place of residence because of the rare quality of its landscape, trees and shrubs and the fine architecture and other improvements established by its property owners; and

     WHEREAS, these property owners are most desirous of preserving, continuing and maintaining this character of community and rare landscape features and of upholding the quality of all future architecture and improvements; and of restricting the use, height and bulk of buildings; and

     WHEREAS, the said undersigned property owners desire to enter into and do hereby enter into a mutual covenant between themselves and such other owners of property in Rancho Santa Fe and/or contiguous and/or adjacent thereto, and/or within reasonable distance thereof as shall hereafter duly file for record appropriate additional covenants with the County Recorder of said County, accepting and establishing in general thereon the provisions hereof as provided in Section 5 of Article V hereof; and all of the property described at the end of this instrument immediately above the respective signatures hereto, and all of the property of each owner described in any subsequent covenant or declaration of restrictions, filed for record with said County Recorder as provided in Section 5 of Article V hereof, shall at any subsequent time be taken, together, as the property hereinafter referred as the “said property”; provided, however, that the words “property herein described,” wherever used in this covenant, shall be construed to refer to and include lots and parcels at the end of this instrument specifically described, and no other property; and

     WHEREAS, the power to interpret and enforce certain of the conditions, restrictions, covenants, reservations, liens and charges set forth in this covenant is to reside in Rancho Santa Fe Association, a non-profit, cooperative association, organized and existing under and by virtue of the laws of the State of California, hereinafter referred to as “The Association” and in Rancho Santa Fe Art Jury, hereinafter referred to as the “Art Jury”, created and established as provided herein; and

     WHEREAS, Santa Fe Land Improvement Company, a California Corporation, hereinafter referred to as the “Company”, did on the 28th day of December, 1922, file in the office of the County Recorder of San Diego County, California, a map of the subdivision of said Rancho Santa Fe numbered 1742; and did also, on the 26th day of September, 1927, file in the office of said County Recorder a resubdivision of Lots 3, 4, 5, 6, and 7, of Block 37 of said Rancho Santa Fe, now known as Map No. 2057, records of said County of San Diego; and

     WHEREAS, said Company has sold, disposed of or conveyed certain portions of said Rancho Santa Fe subject to reservations, restrictions, covenants and conditions subsequent as set forth in conveyances and agreements of sale which it is now the intention and desire of said company and its successors in interest and assigns to continue in full force and effect during the respective periods for which the same were imposed, subject, however, to the provisions of Sec. 24 of Article IV hereof, each and all of which is made a part hereof as if set out in full herein, but only for said periods; provided that both from the execution of this covenant and upon the expiration of said hitherto established reservations, restrictions, covenants and conditions subsequent the following restrictions, conditions, covenants, reservations, liens and charges shall be in full force and effect as herein provided.

     NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS:  That said undersigned property owners hereby certify and declare that they have established and do hereby establish the general and local plan for the protection, maintenance, development and improvement of the property now or hereafter made subject to the conditions hereof as herein provided and have fixed and do hereby fix and impose the general and local protective restrictions, conditions, covenants, reservations, liens and charges upon and subject to which all lots, parcels and portions of said properties shall be held, leased or sold and/or conveyed by them as such owners, except as provided in Section 5 of Article V hereof, each and all of which is and are for the benefit of all of said property and of each owner of land therein and shall inure to and pass with said property and each and every parcel of land therein, shall apply to and bind the assigns and respective successors in interest of the present owners thereof, and are and each thereof is imposed upon the property herein described as a servitude in favor of said property, and each and every parcel of land therein as the dominant tenement or tenements as follows, to-wit:

ARTICLE I

General Basic Restrictions

     Par. 1. Section 1.  (As amended in 1939.) Uses of Property Prohibited.  There shall never at any time be erected, permitted, maintained or carried on upon said property or any part thereof, nor shall any part of said property ever be used for any saloon, or place for the sale or manufacture for sale of malt, vinous or spirituous liquors; any foundry, brickyard, cemetery, columbarium, crematory; any institutions for the care or cure of persons afflicted with tuberculosis, or for the care, cure or restraint of the mentally impaired or of victims of drink or drugs or any detention home, detention or reform school, asylum or institution of like or kindred nature; any building for the manufacture of gunpowder or explosives, or any product or by-product of kelp, fish meal, stock food made of fish, fish oil or fertilizer, or for carrying on any copper or other smelting, or for conducting a slaughter house, stock yard, tannery, oil refinery or fish cannery; automobile camp, or a building for other business or industrial use not specifically mentioned herein unless such use is approved by the Association and is located in a use district permitting the same; or any noxious trade or business or use of the property whatsoever; provided, however, that the Board of Directors shall have the right to grant annual licenses, revocable for cause, under the Covenant for the sale of package liquors in grocery and drug stores, or for the sale of light wines and beer for consumption on the premises in restaurants, or for the sale of liquor for consumption on the premises in hotels or guest ranches maintaining forty or more rooms, or to a hotel maintaining at least 20 rooms, if the said hotel has been under the Covenant for at least 5 years, or on golf courses which maintain a regulation eighteen hole golf course, or in the club house of any recognized community club, all subject to the use district limitations described in this Covenant and the County Zoning Ordinance No. 371, and subject to the payment of such annual license fee as shall be determined by the Board of Directors, but not to exceed fifty dollar ($50.00).

Par. 2. Section 2. (a) (As amended 1973.) ARTICLE I, Section 2, Par. 2 is hereby deleted form the Covenant in its entirety.

Par. 3. Section 3.  Drilling for Oil Prohibited.  No derrick of other structure designed for use in boring for oil or natural gas shall be erected, placed, permitted or maintained upon any part of said property, nor shall any oil, natural gas, petroleum, asphaltum, or any other mineral products or substances be produced or extracted therefrom, provided that if mineral oil be developed and produced in commercial quantity in any well located within three thousand feet of any portion of said property, such portion shall then and thereafter be open for prospecting, drilling or producing of oil.

Par. 4. Section 4.  Enforcement by Rancho Santa Fe Association and Art Jury.  There is hereby granted to Rancho Santa Fe Association, a non-profit, cooperative corporation, organized and existing under and by virtue of the laws of the State of California, hereinafter referred to as the “Association” and to Rancho Santa Fe Art Jury established as herein provided, hereinafter referred to as the “Art Jury”, the right and power as in this covenant provided to interpret and enforce, the restriction, conditions, covenants, reservations, liens and charges imposed by the provisions of this covenant and/or by any conveyance, lease, or contract of sale now, hereafter or heretofore made concerning any of said property or to which any portion thereof may at any time be subject.

Par. 5.  Section 5.  (As amended in 1939.)  Keeping of Stock or Poultry.  The keeping of any cattle, hogs, rabbits, horses, poultry, or other animals, on said property shall be subject to reasonable regulations to be made by the Board of Directors, determining the numbers thereof, the distance they must be maintained from dwellings and public roads, and other sanitary requirements.  The nature of housing shall be under the jurisdiction of the Art Jury and subject to the provisions in the Covenant as to buildings and major and minor constructions.  The setting of traps, except for gophers, squirrels, or small rodents, shall be subject to reasonable regulations to be made by the Board of Directors.

Par. 6. Section 6 (As amended in 1939.)  Construction to be Diligently Prosecuted and New Material Used.  No building shall be in any manner occupied while in the course of original construction or until made to comply with all requirements of the Covenant.  The work of construction of any building or structure shall be prosecuted with reasonable diligence from the time of commencement until the same shall be fully completed.  Every building, fence, wall or other structure placed on any part of said property shall be constructed from new material and not from second hand material, except with written approval of the Art Jury.  Stone is considered a new material.  No building shall be moved on or onto or reconstructed on any of said property , except with the approval of the Art Jury.

Par. 7.  Section 7. Status of Split Lot Ownership.  An ownership or single lot holding comprising parts or portions of two or more adjoining lots, or all of one lot and parts of one or more lots adjacent thereto or other resubdivision approved as herein provided, the total average width of which is not less than fifty (50) feet and the total area of which is not less than five thousand (5000) square feet may with the approval of the Association be deemed to be a building site for the purposes hereof.

Par. 8. Section 8.  Minimum Cost of Improvements and Ornamental Planting.  (a) The cost or value of the first building to be erected on any building site in said property including a reasonable fee of architect and reasonable profit for builder, shall be not less than the amount specified for that building site herein or in any subsequent restrictions affecting the same approved by the Association and said minimum cost at any future date is to be taken as that sum which will build the same amount of building as in the judgement of the Board of Directors of the Association was possible to be built for the sum named on July 1st, 1927.  Nothing in this clause is intended to prevent the building of private garages or other approved accessory buildings, after or at the same time with the construction of the main building.  No temporary stands for the sale of vegetables or other products shall be built on any lot, until a building of the minimum cost required for said lot is erected and maintained thereon and then only after obtaining a written revocable permit therefor from the Association.  With the written consent and approval of the Association, upon notice to owners of adjacent property and a hearing if a protest if filed within five days thereafter, a shed may be erected upon an agricultural or horticultural property for the purpose of processing agricultural products and/or housing machinery or other equipment necessary for the efficient operation of such property prior to the erection of a dwelling on said acreage, providing the Association shall have the right to prescribe the location of any such shed so as to make the same as inconspicuous as reasonably possible, and that the design and color scheme thereof shall be approved by the Art Jury.

Par. 9.  (b)  In Residence Districts of Classes A, B and C, and in Business and Public Use Districts of Classes H, J, and K, not later than six months after the completion of the above described first or main building on any building site, and in addition to the cost of said building, and of any grading, walks, driveways and construction features exterior to said building there shall be expended for ornamental plants, trees, shrubs, lawns or flowers a sum not less than three per cent (3%) of the cost of said building as indicated by the building permit or permits issued for said building, provided that in no case shall said sum be less than two hundred dollars ($200) nor more than one thousand  dollars ($1000) required.

Par. 10.  Section 9 (As amended in 1930).  Owner Liable for Damage to Streets Caused by Negligence.  If in the opinion of the Board of Directors of the Association, any public improvement, planting, tree or utility of any character is damaged by the negligence or carelessness of any property owner or of any person working for the owner of any part of said property and if on reasonable notice to repair or replace such damage the owner and/or the owner’s local agent fails and neglects to make such repairs and/or replacements within a ten day period from and after such notice, then the Board of Directors may on five days written notice to such property owner hold a public hearing and enter written findings of fact as to what the damages consist of, if they find there is any damage, and the approximate cost of the repair, and/or replacement of the property damaged, and the Association shall have the right and authority ten days after the entry of such written finding (or any time thereafter) to repair such damage and/or to replace such plantings and/or trees set forth in said written findings of fact as damaged, unless the owner repairs the damages set forth in said findings of fact within said ten day period, and to pay for the same out of the general fund of the Association and to assess the amount actually expended by the Association therefor against the owner and/or against the property of the owner; and it is hereby expressly stipulated that the amount so expended and so assessed shall constitute a lien against such property, from and after the date notice setting forth the name of the owner, a description of the property and the amount of the money expended and assessed is filed for record by the Association in the office of the Recorder of San Diego County, and that such lien may be enforced by the Association in its own name or in the name of any owner of any portion of said property in any court of competent jurisdiction; such lien shall be subordinate to the lien of any valid bona fide mortgage or deed of trust executed in good faith and for value on the property subject thereto.  The amount of such expense and cost when repaid to the Association shall be returned to the general fund of the Association and a release of lien prepared and delivered by the Association to the property owner.

Par. 11.  Section 10 (As amended in 1930).  Trimming and Removal of Trees and Shrubs.  No tree or shrub over five feet in height above the ground on any part of said property within twenty-five (25) feet of any public road shall be cut back, removed or killed, except with the written approval of the Association.  The Association shall have sole authority and right to trim, remove, replace, plant or replant, or otherwise care for trees, shrubs and plantings in the sidewalk or other spaces in front of lots or adjoining them, subject to the authority of any county or other officials having superior jurisdiction; this section shall not apply to fruit or orchard trees maintained for their crops.

Par. 12.  Section 11.  Right to Plant and Maintain Vacant and Unimproved Lots.  The Association shall have the right at all times to enter on or upon any lot or parcel of said property that is vacant and unplanted or untenanted by the owner thereof, after reasonable notice to the owner thereof, and at its own expense, and without charge to the owner thereof, to plant or replant, trim, cut back, remove, replace and/or maintain hedges, trees, shrubs or flowers on the area within twenty-five (25) feet of any front or rear or side line thereof and/or keep cultivated and/or remove, plants on the said portion of any parcel, lot or building site of said property and the said Association or any officer or agent thereof, shall not thereby be deemed guilty of any manner of trespass.  When the owner of a parcel or lot so planted or maintained by the Association shall give written notice to said corporation of his intention to improve the same within thirty days, the Association may within said thirty days and thereafter until the work on said improvements is commenced, transplant, remove or dispose of any or all of the plantings which may have been made by it.

Par. 13.  Section 12.  Privies and Cesspools. No privy shall be erected, maintained or used upon any part of said property, but a temporary privy may, with the approval of the Association, be permitted during the course of construction of a building.  Any lavatory, toilet or water-closet that shall be erected, maintained or used thereon shall be enclosed and located within a building herein permitted to be erected on said premises; and, until an adequate public sewerage system shall be provided therefor.  The same shall be properly connected with an underground septic tank so constructed, covered and operated that no offensive odors shall arise or otherwise escape therefrom; and provided further that no such septic tank shall hereafter be constructed, altered and maintained unless a building and plumbing permit therefore shall first have been obtained from the Association, and that before any use thereof a Certificate of Completion and Compliance shall also have been issued therefor by said Association.

Par. 14.  Section 13 (As Amended in 1939).  Maintenance of Health Safety and Welfare.  To maintain the health, safety and general welfare of people residing on said property, and to prevent danger from fires, street traffic, camping and picnicking, or other hazards to life and limb or property, the Association shall adopt such rules and regulations as it may from time to time deem advisable and necessary and all parts of said property shall at all times be maintained subject to said rules and regulations; provided, however, that all such rules and regulations shall be in addition to any regulations of County, State or other duly constituted public authority.  No fires shall hereafter be built and maintained except in chimneys, barbecue pits, fireplaces or other fire arrangements for which a written permit has been issued by said Association.  The foregoing shall not apply to fires used in clearing of land or the burning of brush where a permit has been secured from the Fire Warden and the provisions of said permit and the law applicable thereto are being complied with.

Par. 15.  Section 14.  Maintaining Natural Drainage.  No obstruction, diversion, bridging, pollution or confining of water courses or of the existing channels, through which surface water in time of storms naturally flows upon and across any lot in said property, shall be made by any lot owner in such a manner as to cause damage to other portions of said property, and the right is expressly granted to said Association, its successors and assigns, as an incident of the development of the said property including the construction of street gutters, ditches, and otherwise to cause reasonable increases or decreases in the amount of water which would in a state of nature flow into and through any such natural storm water channels.

Par. 16.  Section 15.  Clothes Drying Yard Must Be Enclosed.  No clothes, sheets, blankets or other articles shall be hung out to dry on any part of said property except in a yard enclosed by a lattice, fence, wall or other enclosure approved by the Art Jury.

Par. 16-A.  Section 16 (As amended in 1930).  Pest Control.  No plants, trees or seeds infected with noxious insects or plant diseases shall be brought upon, grown or maintained upon any part of said property and no plants, trees or seeds shall be brought upon any part of said property nor shall insect pests be suffered to remain thereon except in accordance with regulations established by, and subject to inspection by the Association.  The right is specifically granted to the Association to enter upon any part of said property and inspect all plants, trees, and seeds thereon, and also said premises for insect pests, at any time, and if after due written notice from said Association, of the existence on any part of said property of infected plant or tree diseases, or insect pests, the owner fails or neglects to take such measures for the eradication or control of the same as said Association may deem necessary for the protection of the community, the Association may thereupon enter thereon and at the expense of the owner thereof, destroy or remove infected or diseased plants and/or trees, and/or spray the same, and/or take such other measures as may be necessary in the opinion of the Association to protect the community from the spread of such infection and/or pests.

Par. 17. Section 17 (As Amended in 1939).  Storage of Machinery.  No machinery such as spray rigs, tractors, graders, or other such machinery shall be stored in the open upon any property for such a long time that the same shall become an unsightly nuisance.  It is realized that short open storing of machinery is a necessary and economical operation; but the storing of such machinery exposed to view from highways or from the residences of members, is to be avoided and the avoidance of the same is hereby provided for.  Any member feeling aggrieved in this regard shall have the right to complain to the Board of Directors against the owner of the property where machinery is stored or against the owner of the machinery if the property is under the Covenant or if the owner is a member of the Association, and the Board of Directors shall informally investigate the matter and if it appears to the Board of Directors that the machinery has been stored for too long a time in a place where the view of the same is injurious to the community or to the property of a member, the Board shall order the removal thereof, to an approved site, and all members hereby mutually agree to be bound by the said order and to obey the same.

Par. 18.  Section 18 (As Amended in 1939).  Storage of Manure.  No member shall store or permit to be stored upon his property such quantities of manure, composting materials and decaying vegetation matter in such large quantities as to constitute an injury to the property of any other member.  Any member feeling aggrieved of what appears to him to be a violation of the foregoing shall have the right to informally complain to the Board of Directors  and the Board of Directors shall have the power to investigate the matter and to hold a hearing thereon, and if it shall be the decision of the Board of Directors that the prohibition provided herein is being violated the Board of Directors shall have the right to so decide and each member hereby agrees to abide by the decision of the Board of Directors in that regard, either to promptly remove the offending material, spread it, or so dispose of it that will in the opinion of the said Board of Directors abate said nuisance.

ARTICLE II
Rancho Santa Fe Association

Par. 19.  Section 1 (As Amended in 1930 and 1939). Signs and Billboards.  The erecting of signs, or billboards of any character, except public notices required by law, shall be kept under the continuing jurisdiction of the Board of Directors of the Association so as to prevent disfigurement to the community.  It is recognized that signs are divisible into two classes:  First, commercial signs, including “for sale” or “for rent” signs; and second, private signs, including road markers on roads leading to properties, and name markers indicating the name of the resident upon a property.  No commercial signs shall be erected upon any property under the jurisdiction of this Association except upon permit issued by the Board of Directors pursuant to a petition showing the size, construction, material and location of any such sign.  A private sign may be erected without such petition, but subject to the continuing jurisdiction of the Board of Directors.  Upon complaint, the Board may cause alteration in design, change in location, or such other alteration as shall be the decision of the Board after a hearing upon said complaint and after the defending property owner has had notice of the complaint and an opportunity to attend the hearing.

Par. 20.  Section 2.  Approval of Subdivision Plans.  No part of said property shall be subdivided or disposed of in parcels unless and until the map of the subdivision or the description of the parcel shall have been submitted to and approved in writing by the Association after securing the advice in writing of the Art Jury.

Par. 21. Section 3 (As Amended in 1930 and 1939).  Maintenance and Improvement Charges.  Each and every portion of said property (except streets, whether dedicated or not or hereafter opened, laid out or established, open spaces maintained for the general use of owners of said property, land taken for public uses and property segregated, retained, conveyed or set aside for public, semi-public or common purposes) shall be subject to a continuous maintenance lien securing payment of an annual assessment or charge to be fixed, established and collected from time to time as herein provided.

Par. 22.  (As amended in 1973.)  The Art Jury and the Park and Recreation Board shall each, on or before the first day of July in each succeeding year, prepare and file with the Association written budgets of estimated annual expenses.  The Association shall, on or before the third Friday of July in each succeeding year, prepare and file in its office at Rancho Santa Fe a written budget of estimated annual expenses (which shall include the Art Jury and the Park and Recreation Board budgets) and shall prepare a statement showing reserves, estimated collections, accounts payable, and previous year’s experience on each item for comparison with said budget, so arranged as to show estimated assessment levies for each of the respective departments.  The Secretary of the Association shall mail to each member of the Association a copy of said statement on or before the first day of August in each succeeding year.  The Board of Directors of the Association shall conduct a public hearing on said budget in the office of the Association  or before the second Friday of August in each succeeding year, said hearing to be adjourned from day to day, or to a larger room if necessary, and a budget shall be adopted by the Board after reviewing all complaints.  The adoption of the budget by the Board shall be final.

Par. 23.  The Association shall have authority:

Par. 24. (1.)  To fix and establish annually, as herein provided, the amount of such annual charge or assessment and to determine an assessment rate per $100.00 of assessed valuation of land and improvements, not exceeding $2.00 per $100.00 of valuation, not to exceed $1.00 of which may be used to support the golf course, said assessed valuations being that which have been established by the assessment roll of the County Assessor of San Diego County, California, which assessment rate in its judgment will yield sufficient money to defray the expenses set forth and itemized in said budget, or in accordance with some other legal and equitable plan to be adopted by a majority of all members of the Association, provided that the total amount of said charge or assessment under said alternate plan shall never exceed the largest total amount that could have been raised under the assessment rate plan which is based upon the assessed valuations as above provided.

Par. 25.  If the Association uses the county assessment roll as above provided, there shall be an assessment roll prepared in such form as in the opinion of the Directors of the Association shall adequately provide for the listing of every individual parcel of property, the name of the owner, the number of acres therein, the assessed value of land and improvements, the rate and amount of assessment and record of payments.  It shall be the duty of the Secretary to annually compile said assessment roll and to compute the amount of annual assessments after the fixing of said assessment rate by the Board of Directors.

Par. 26. (2.)  To expend the money collected from said charges or assessments as provided in said budget for the purposes set forth in this Covenant.  The approval of the said budget shall constitute approval for the Art Jury and the Park and Recreation Board of the amounts provided in said budget therefor; provided, however, that the Association shall have power to make special appropriations as it may deem expedient if funds for same are available; and provided further that if and when an epidemic of assessment delinquencies becomes apparent to the Board of Directors, the Board shall have the right to pro rate assessment collections among the Art Jury, the Park and Recreation Board, and the General Fund on a pro rata basis as determined by the percentage that each bore to the then pending annual budget.

Par. 27.  The Art Jury and the Park and Recreation Boards shall, as the need for money arises, file requisitions for payments out of appropriations made by the Association as above provided, which said requisitions shall be paid by the Treasurer of the Association.  Any funds remaining unrequisitioned by the Art Jury or the Park and Recreation Board at the end of the fiscal year shall revert to the General Fund of the Association.

Par. 28. (3.)  The right to collect and enforce the collection of such charges or assessments is hereby granted to said Association and the owners of said property as to any of said property owned or conveyed by them, except as otherwise provided herein, have established and to hereby establish, reserve and impose respectively a lien thereon securing such annual charge or assessment.

Par. 29.  Statements of annual assessments shall carry sufficient property description to enable proper identification of property.  However, such property description as is placed on said statements shall be considered as complete identification unless request for more complete identification is made in writing to the Secretary within thirty (30) days from day of mailing of statement.

Par. 30.  Such annual charge or assessment shall be fixed, determined and spread annually on or about the twentieth of October for the current fiscal year provided that the fiscal year shall run from July 1st of one calendar year to July  1st of the next calendar year; and 50% of said charge or assessment shall be due and payable to the Association on the first day of November of each year, and shall be delinquent on the fifth day of December of each year, and the remaining 50% of said charge or assessment shall be due and payable on the twentieth day of April of each year, on which respective delinquency dates the annual charge or assessment then delinquent shall become enforceable against the respective delinquent owners of said property under this Covenant and against the said property and so continue until full payment of said charge or assessment, together with penalties, interest charges and cost of collection thereof, (including reasonable attorney’s fees not exceeding 10 per cent of the total amount due) is made.  Penalties and interest charges are hereby fixed as follows:  8 per cent of the first installment, if not paid on or before the fifth day of each December, an additional 3 per cent of the first installment if not paid on or before the 20th day of April next following, 3 per cent of the second installment if not paid on or before the 20th of April in each year, and interest at the rate of one per cent per month on the total of the unpaid assessments if not paid on or before the 30th of June of the year following the date of levy, said interest to start on the 1st day of July next succeeding.

Par. 31.  It is further provided that should a member pay both first and second installments of the said assessments on or before the 5th day of December of the year in which said assessment is levied, that a discount of 3% of the second installment thereof shall be allowed as a premium for the early payment thereof.

Par. 32.  The right and power is hereby given to the Board of Directors to waive interest and penalty charges in extraordinary cases after public hearing, and to effect compromise settlements of delinquent assessments in cases where their judgment indicates such compromise to be in the best interests of the Association.

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