MAY 2023.RULES & REGS

the Recreational Facilities. The tender of the full equity payment by the Foreclosing Lender shall be deemed an exercise of the right to elect this option. Alternatively, the Foreclosing Lender may also elect not to pay the full equity payment, in which case the Foreclosing Lender may not occupy or allow occupancy of the Lot or use or allow the use of the Recreational Facilities during the period of time the Foreclosing Lender owns the Lot. The failure of the Foreclosing Lender to tender the full equity payment within ninety (90) days of acquiring title to the Lot shall be deemed an exercise of the right to elect this option. The foregoing election by the Foreclosing Lender shall be irrevocable. A Foreclosing Lender shall not be entitled to any refundable portion of the foreclosed owner’s equity payment unless the foreclosed owner consents in writing. A Foreclosing Lender shall be obligated to pay all dues, Assessments and other charges attributable to the Lot as long as the Foreclosing Lender owns the Lot, regardless of the Foreclosing Lender’s election to pay or not pay the full equity payment. If the Foreclosing Lender elects to pay the full equity, the former Member shall be entitled to return of the refundable equity subject to the terms of these Rules and the terms of the Declaration. If the Foreclosing Lender elects not to pay the full equity, the former Member shall not be entitled to the return of the refundable equity until such time as a replacement Member acquires the Lot and pays the full equity, at which time the refundable equity shall be returned to the former Member subject to the terms of these Rules and the terms of the Declaration.

c.

4.

Equity Requirements for Co-habitants

a.

A Co-habitant acquiring title to a Lot shall be exempt from any requirement for an equity payment provided the Co-habitant meets the definition of Co-habitant set forth in these Rules and is acquiring the Lot in which the Co-habitant resided with the Member who designated the Co-habitant.

5.

Selling Ow ner Acquiring another Lot in Frenchman’s Creek

a.

An Owner who has sold his/her Lot ("Seller") shall, upon filing with the Association a statement (in form and content acceptable to the Association) of Seller’s desire to purchase another Lot in Frenchman’s Creek (“Seller’s Statement”) be granted the privilege for a period of twelve (12) months from the date of the closing of Seller’s home (“the Waiver Period”) to acquire title to a replacement Lot within Frenchman’s Creek without being required to pay any additional Equity. In such event and subject to the Declaration, By- Laws and these Rules (the “Governing Documents”), Seller’s returnable Equity payable upon sale of

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