MAY 2023.RULES & REGS

(ii) A Member may acquire a second Lot which is to be the Member’s residence, and transfer his or her Recreational Certificate to the second Lot with no additional equity, but the Member must be responsible for the full financial obligation to the Association for each Lot he or she owns and the refundable equity to the seller of the second Lot shall not be paid until a new replacement Member paying a full Member’s equity is obtained from a buyer of the remaining Member’s first Lot. From the time of acquisition of the second Lot until the Member sells his first Lot, only one of the two Lots may be occupied and only one may exercise rights under a Recreational Certificate. (iii) A Member may acquire additional Lots for the purpose of redevelopment and sale and be treated as a Member/Developer subject to the requirements of this Rule. In order to qualify as a Member/Developer under this Rule, the Member 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 Member must request Member/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 Member/Developer may not occupy or allow occupancy of any Lot acquired as a Member/Developer at any time while the Member/Developer owns the Lot; 3) the Member/Developer may not use or allow anyone to use on Member/Developer’s behalf any portion of the Recreational Facilities for any Lot owned as a Member/Developer; and 4) after acquiring title, the Member/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 Member/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 Member/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

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