MAY 2023.RULES & REGS

the time a new Member acquires a Lot and the refundable portion at the time Lot is transferred shall be the amounts set forth by the Board of Governors at the time the Lot is acquired by the Member.

B.

Exception for Developers and Foreclosing Lenders

1.

Definitions

a.

A “Developer” is a “Person”, or any Affiliate of such Person, who purchases a Lot for the purpose of constructing, reconstructing and selling the Lot. In order to qualify as a Developer under this Rule, the Developer must be approved for such status in writing by any officer of Frenchman’s Creek Board of Governors prior to acquiring title and must meet all of the following criteria: 1) the Developer must request Developer status for purposes of the equity payment before closing and waives any right to such status upon closing and payment of the full equity payment; 2) the Developer may not occupy or allow the Lot to be occupied at any time while the Developer owns the Lot; 3) the Developer may not use or allow anyone to use on Developer’s behalf any portion of the Recreational Facilities; and 4) after acquiring title, the Developer must pay in a timely manner all financial obligations of the Lot to the Association and undertake substantial renovations and/or improvements to the Dwelling. In order to meet the requirement set forth in item 4) above, the Developer must provide an inspection report for the Dwelling, provided that the Association may designate a representative to inspect the Dwelling to corroborate the report, and must also provide plans and specifications for the intended renovations/improvements in such detail as the Board of Governors may require, which plans and specifications must be implemented as presented once Developer status is approved. Such plans must involve renovations, repairs and improvements totaling the lesser of at least twenty-five percent (25%) of the purchase price paid by the Developer for the Lot or Two Hundred Fifty Thousand Dollars ($250,000.00), which expenditures shall be limited to hard cost for actual renovation, repair or improvement. If an Owner granted Developer status at the time of purchase fails to comply with a criterion for Developer status hereunder, Developer status shall be revoked and the balance of the equity payment due from a non-exempt buyer at the time of acquisition of the Lot shall become immediately due and payable. An Owner granted Developer status shall produce evidence acceptable to the Board of Governors that the Owner has met the criteria set forth above for renovations, repairs and improvements to the Lot before receiving any refund of the equity payment.

c.

“Affiliate” means as to a Developer, any other Person that, dire ctly or indirectly, is in Control of, is Controlled by or is under common

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