HAPOA Collection Policy

Collection Policy for the HAPOA

The Board of Directors of the Holiday Acres Property Owners Association hereby adopts the
following Collection Policy to become effective on January 1, 2019:

1. Statements. Statements for annual assessments will be sent to all members of the
Holiday Acres Property Owners Association (collectively “Members” and individually “Members”) at
their last known address with the notification that annual assessments are due and payable on
January l. The assessment charge is considered delinquent if not received by June 30 . If June 30
falls on a weekend, the latest day a payment will be accepted without a late fee being assessed
would be the next available business day.
2. Past Due Date On July 1 (or the next available business day after June 30, whichever is
later), a late fee of $10 will be added to any unpaid account and a notice sent stating the balance
is “PAST DUE”. If the balance is not paid in 30 days,by August 1, a Notice of Intent to Lien will
be mailed to the Member, giving the Member 45 days to bring the account current. An additional
charge to the Member for the Notice of Intent to Lien will be $50.00. The charge will be posted to
the owner’s account when the Notice is mailed, or hand delivered.
3. Lien. If the Member’s account is still not paid in full on September 15, a lien will be
recorded against the Member’s property located within the subdivision The charge to the Member for
lien placement will be $150.00. The charge will be posted to the Member’s account when the lien is
recorded. At this time, HAPOA will send the Owner a notice of delinquency specifying:

A. The total amount due, with an accounting of how the total was determined;
B. Whether the opportunity for a payment plan exists pursuant to Colorado law and
this policy and instructions for contacting HAPOA to enter a payment plan, if available;
C. The name and contact information for the individual the Member may contact to request a copy
of the
Member’s account to verify the amount of the debt;
D. And that action is required to cure the delinquency and that failure to do so may result in
the Member’s delinquent account being turned over to a collection agency, a lawsuit being filed
against the Member, the foreclosure of a lien against the Member’s property, or other remedies
available under Colorado law.

4. Payment Plan HAPOA will make a good faith effort to coordinate with the Member to set up a
payment plan. A Member may enter a payment plan to pay off a deficiency in equal installments over
a minimum period of six months or such other period as authorized by the Board. If the Member fails
to comply with the terms of the payment plan (fails to remit payment of an
agreed-upon installment or fails to remain current with other charges as they become due during the
payment plan term), HAPOA may pursue legal action. HAPOA is not obligated to negotiate a payment
plan with any Member who has previously entered a payment plan pursuant to this policy.
Furthermore, HAPOA is not obligated to offer or negotiate a payment plan with any Member who does
not occupy the property and acquired the property because of a default of a security interest
encumbering the property or a foreclosure of HAPOA’s lien.

5. Turning Over to Attorney or Collection Agency. On October 1 the account may be turned over
to an attorney or collection agency for collection procedures. Attorney and/or collection agency
fees will be added to the outstanding balance. At that time when the account is brought current and
all matters are settled, the lien will be released.

6. Foreclosure. At any point during the collection process the Association may initiate
foreclosure action, if the delinquent amount equals or exceeds six months of common expense
assessments based on periodic budget adopted by the association. The delinquent amount may include
assessments, late fees, fines and other charges. When an account becomes two years past due, the
HAPOA shall conduct a search of public records to determine if there are any other outstanding
balances, i.e. taxes, water fees and mortgages, due against the account property. A comparison of
total debt to the estimated value of the property will be prepared. Those accounts will be studied
to determine which collection action, if any, will be taken to best secure the interests of the
HAPOA. If foreclosure action appears to be a viable alternative, those accounts will be presented
to the Board of Directors for final determination. The Board will document its decision to
authorize the filing of a foreclosure against a specific property by a recorded vote. The Board of
Directors may not delegate its duty to act under this Section 6 to any attorney, insurer, manager,
or other person.
insurer, manager, or other person.
If HAPOA forecloses on its lien, the Member will lose the Member’s property, having the same effect
as if a first mortgagee
institutes a foreclosure action against the property (although the procedure is different).

7. Payment of Fines. Fines are due when assessed and are delinquent if unpaid after 30 days.
Delinquent fines are subject to a
$25.00 / month late fee. If the total amount of the fine and late fees is above $500.00, a Notice
of Intent to Lien will be mailed giving the Member 45 days to bring the account current. An
additional charge to the property owner for the Notice of Intent to Lien will be $50.00. The charge
will be posted to the Member’s account when the Notice is mailed, or hand delivered. If the Member
still has not paid in full after 45 days, a lien will be placed on the property. The charge to the
property owner for lien placement will be $150.00. The charge will be posted to the Member’s
account when the lien is recorded.

8. Return Check Charges.
A. If any check or other instrument payable to or for the benefit of the HAPOA is not honored by
the bank or is returned by the bank for any reason, including, but not limited to insufficient
funds, the Member is liable to HAPOA for one of the following amounts:
(i) An amount equal to the face amount of the check, draft, or money order plus a return check
charge of $25.00; or
(ii) If notice has been sent as provided in C.R.S. § 13-21-109 and the total amount due as set
forth in the notice is not paid within 15 days after such notice is given, the person issuing the
check, draft or money order shall be liable to the HAPOA for collection for three times the face
amount of the check, but not less than $100.00.

9. Application of Payments. All payments received on account of any Member or the Member’s
property, may be applied first to post-judgment attorney’s fees, costs and expenses; then to costs
and attorney’s fees not reduced to a judgment; then to interest; then to late charges; then to
return check charges; then to fines and other amounts levied pursuant to the Declaration; then to
delinquent assessments; then to current assessments not reduced to judgment; and finally to amounts
reduced to judgment.

10. Priority. Notwithstanding the time frames set forth above, if a lien holder with priority
over the Association’s lien (i.e., first mortgagee) takes title to a Property through foreclosure
or deed in lieu of foreclosure, the Association may file a lien on the Property for any delinquent

11. Referral of Delinquent Accounts to Attorneys. Upon referral of a delinquent account to the
attorneys, (as indicated in Section
5 hereto and elsewhere), the attorneys will take appropriate action to collect the accounts
referred. After an account has been referred to the attorney, the account will remain with the
attorney until the account is settled, has a zero balance or is written off. The attorney is
authorized to take whatever action is necessary, in consultation with the President of the Board of
Directors or his/her designee, believed to be in the best interest of HAPOA. However only a
majority vote of the Board of Directors may authorize a legal action. A list of possible actions
includes, but is not limited to , the following:

A. Filing a lien against the delinquent Member’s property to provide record notice of HAPOA’s
claim against the property, if not already filed;
B. Filing suit against the delinquent Member for a money judgment. The purpose of obtaining a
personal judgment against the Member is to allow HAPOA to pursue remedies such as garnishment of
the Member’s wages or bank account to collect judgment amounts;
C. Instituting a judicial action of foreclosure on HAPOA’s lien. HAPOA may choose to foreclose on
its lien in lieu of or in addition to suing a Member for a money judgment. The purpose of
foreclosing is to obtain payment of all assessments owing in situations where either a money
judgment lawsuit has been or is likely to be unsuccessful or in other circumstances that may favor
such action;
D. Filing necessary claims, documents, and motions in Bankruptcy Court to protect HAPOA’s claim;
E. Filing a court action seeking appointment of a receiver. A receiver is a disinterested person,
appointed by the court, who manages rental of the Member’s property, and collects the rents
according to the court’s order. The purpose of a receivership for HAPOA is to obtain payment of
current assessments, reduce past due assessments, and prevent waste and deterioration of the

Once accounts are turned over to the attorney, Members will make payment to HAPOA at the address of
the attorney. The
attorney will consult with HAPOA regarding collection procedures and payment arrangements.