4.09 Capital Contributions

FCHOA Declaration of Protective Covenants - Revision Date: 2022-05-20

Upon the transfer of a Lot, the purchaser or transferee shall pay a sum equal to fifty percent (50%) of the Annual Assessment established from time to time by the Board which shall be due and payable to the Association at closing (“Capital Contribution”). The Capital Contribution may be placed in any of the Association’s reserve accounts. The Capital Contribution shall not be applied to an Owner’s responsibility for Assessments but shall be considered an additional Assessment and the Association shall have all rights and remedies for Assessments as set forth herein. The following non-monetary transfers are exempt from the payment of a Capital Contribution: (i) transfers by Owners into a trust in which the Owners are the beneficiaries; (ii) transfers by Owners into an entity where the Owners are the primary shareholder or member; (iii) transfers occurring as the result of the death of an Owner to an executor or personal representative of the Owner; (iv) transfers to a mortgagee as the result of foreclosure or a deed in lieu of foreclosure; and (v) other similar non-monetary transfers as approved by the Board in their sole discretion.