MAY 2023.RULES & REGS

(viii) The refundable equity to the seller or sellers of the such additional Lots acquired by a Member under this Article X as a Member/Developer shall not be paid until a new replacement Member paying a full Member’s equity is obtained from a buyer of the seller’s former Lot or until the acquiring Member pays the full equity for the such additional Lot, whichever occurs first. A Member acquiring additional Lots hereunder as a Member/Developer may take title in the name of an entity or in the name or names of an individual or individuals to whom the Member could transfer a Lot hereunder without the payment of an additional equity, so long as the Member or persons to whom the Member could transfer his or her first Lot hereunder without the payment of an additional equity are at all times the sole owner or owners of all stock, equity or other ownership interests in the entity. Any change in ownership of all or any portion of the entity or the Lot, whether voluntary or involuntary, to any person or persons other than a person or persons to whom the Member could transfer a Lot hereunder without the payment of an additional equity shall result in the full member’s equity payment becoming immediately due and payable. In the event the Member acquires additional Lots hereunder in the name of an entity or in the name of an individual or individuals to whom the Member could transfer a Lot hereunder without the payment of an additional equity, the Association may require, as a condition to the sale and the right to forego the full Member’s equity, that the Member personally guarantee all financial obligations to the Association for any Lot thereby acquired. The Board of Governors may, in its sole discretion, deny Developer or Member/Developer status to any applicant for any reasons the Board deems to be in the best interests of the Association. (ix) “Foreclosing Lender” means the holder of a mortgage on a Lot, or its successors or assigns, which acquires title through the foreclosure of the mortgage or by deed in lieu of foreclosure. Upon acquiring title to a Lot by foreclosure or by deed in lieu of foreclosure, a Foreclosing Lender shall have the right, but not the obligation, to elect to pay the full equity payment and have all use rights of a Member, including, but not limited to, the right to use

e.

3.

Equity Requirements for Foreclosing Lenders

a.

b.

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