SECTION 1. Common Receipts. The Board shall have the duty to prepare an annual budget setting forth the projected Common Expenses for the ensuing fiscal year, and shall collect from each Unit Owner, his, her, or their heirs, administrators, successors and assigns, as "Common Receipts", the proportionate part of the Common Expenses assessed against such Unit Owner pursuant to the Condominium Declaration, the Articles of Incorporation, these By- Laws, and in accordance with applicable law.

Annual Common Expense assessments shall be made for the annual period to be determined by the Board, and shall be payable in monthly installments due on the first day of each month The Board shall cause to be prepared, at least thirty (30) days in advance of the due date of each first annual Common Expense installment, a list of the Units and the annual Common Expense assessments applicable thereto according to the name of the Unit Owners thereof, which list shall be kept in the office of the Association and shall be open to inspection upon request by an Unit Owner. written notice of the Common Expense assessment shall be sent by mail or delivered to every Unit Owner as more particularly described in Article XVI herein.

If an annual Common Expense assessment is not made as required, an assessment shall be presumed to have been made in the amount of the last prior year's assessment, and any installments of such annual assessments shall be due upon each installment payment date until anew annual assessment is made. In the event the annual Common Expense assessment proves to be insufficient, the budget assessment may be amended at any time by the Board provided that nothing herein shall serve to prohibit or prevent the Board from imposing a lump sum assessment in the case of any immediate need or emergency.

SECTION 2. Determination of Common Expenses. The amount of monies for Common Expenses deemed necessary by the Board, the character of the Common Expenses as General Common Expenses, Limited Common Expenses, Commercial Limited Common Expenses, and Residential Limited Common Expenses, and the manner of expenditure thereof, including but not limited to the allocation thereof , shall be matters for the sole discretion of the Board.

SECTION 3. Disbursements. The Board shall take and bold the funds as collected and shall disburse the same for the purposes and in the manner set forth herein and as required by the Condominium Declaration, and applicable law.

SECTION 4. Depositories. The depository of the Association shall be such bank or banks as shall be designated from time to time by the Board and in which the monies of the Association shall be deposited. Withdrawal of monies from such accounts shall be only by checks signed by such parties as are authorized by the Board, provided that a management agreement may include among its provisions authority for the manager to sign checks on behalf of the Association for payment of the obligations of the Association, if the proper fidelity bond is furnished to the Association.

SECTION 5. Accounts. The receipts and expenditures of the Association shall be Common Expenses, and shall be credited and charged to accounts under the following classifications and shall be allocated among the Unit Owners as the Board shall deem appropriate:

(a) Current expenses, which shall include all expenditures within the year for which the budget is made, including reasonable allowances for contingencies and working funds. Current Expenses shall not include expenditures chargeable to reserves, or to additional improvements, or to operations. At the end of each year, the unexpended amount remaining in this account shall be applied to reduce the assessments for current expenses for the succeeding year, or may be distributed to the membership as the Board shall determine.

(b) Reserve for deferred maintenance, which shall include funds for maintenance items that occur less frequently than annually.

(c) Reserve for replacement, which shall include funds for repair or replacement of Common Elements or other facilities of the Association which is required because of damage, depreciation or obsolescence. The amount in this account shall be allocated among each of the separate categories of replacement items.

(d) Reserves for capital improvements, which shall include funds to be used for capital expenditures or for the acquisition of additional personal property that will be part of the Common Elements.

(e) Operations, which shall include all funds from the use of the Common Elements or from any other sources. Only the additional direct expense required by any revenue producing operation will be charged to this account. At the end of each year, any unexpended amount remaining in this account shall be applied to reduce the assessments for current expenses for the succeeding year or may be distributed to the membership in the same proportion as Common Expense are assessed, as the Board shall determine. Losses from operations or otherwise shall be met by levying special assessments against Unit Owners, which assessments may be made in advance in order to provide a working fund.

The Board shall not be required to physically segregate the funds held in the above accounts but may, in its sole discretion, maintain the funds in one or more consolidated accounts. As to each consolidated account, the division into the various accounts set forth above need to be made only on the Association's records.

SECTION 6. Reserves. The Board shall not be obligated to expend all of the revenues collected in any accounting period, and must maintain reasonable reserves for, among other things, repairs, replacements, emergencies, contingencies of bad weather or uncollected accounts. Notwithstanding anything herein to the contrary, the Board in its determination of the Common Expenses and the preparation of a budget shall specifically designate and identify that portion of the Common Expenses which is to be assessed against the Unit Owners as a capital contribution and is allocatable to reserves for each separate item of capital improvement of and to said property. The amounts assessed and collected for the reserves shall be kept in one or more interest-bearing savings accounts, or certificates of deposit and shall not be utilized for any purpose other than that which was contemplated at the time of the assessment. The foregoing shall not be construed to mean that the Board shall not be permitted to keep additional cash on hand, in a checking or petty cash account, for the necessary discharge of its function.

SECTION 7. Exemption For Assessments for Capital Improvements. Anything to the contrary herein notwithstanding, neither Declarant nor any Institutional Lender or any Unit shall be required to pay any assessment for capital improvements of any kind, including reserves, whether by way of regular or special assessments or otherwise. Further, this provision may not be amended without the written consent of the Declarant and that of every Institutional Lender.

SECTION 8. Notice. The Board shall give notice to each Unit Owner, in writing, and to any Institutional Lender who requires same, of the amount estimated by the Board for Common Expenses for the management and operation of the Association for the next ensuing period, directed to the Unit Owner at his last know address by ordinary mail, or by hand delivery Said notice shall be conclusively presumed to have been delivered five (5) days after deposit in the United States mails. If an annual Common Expense assessment is not made as required, an assessment shall be presumed to have been made in the amount of the last prior year's assessment to be paid in twelve (12) monthly installments and such assessment shall be due upon each installment payment date until changed by an amended assessment. In the event the annual Common Expense assessment proves to be insufficient, the budget and assessments maybe amended at any time by the Board, provided that nothing herein shall serve to prohibit or prevent the Board from imposing a lump sum assessment in the case of any immediate need or emergency which cannot be met by reserve funds earmarked for such contingency.

SECTION 9. Acceleration of Assessment Installment Upon Default. If a Unit Owner shall be in default in the payment of an installment upon a Common Expense assessment, the Board may accelerate the remaining installments of the assessment and file a lien for such accelerated amount upon notice to the Unit Owner, and if the delinquent installment is not paid by the date set forth in the notice, the then unpaid balance of the Common Expense assessment shall come due upon such date, but not less than five (5) days after delivery of the notice to the Unit Owner, or not less than ten (10) days after the mailing of such notice to him by registered or certified mail, whichever shall first occur. If no such notice has been given and default continues the Board shall, between thirty and ninety days after the default first occurs, accelerate the remaining installments of the assessment, upon similar notice to the Unit Owner, and file a lien for such accelerated assessment as permitted by law if the delinquent installment is not paid by the date set forth in this notice. In the event that such a notice is filed, the Board may notify any Institutional Lender holding a mortgage which encumbers the Unit affected by such default or publish appropriate notice of such delinquency to the membership of the Association. If said default continues for a period of sixty days, then the Board shall foreclose the foregoing lien pursuant to law or commence a suit against the appropriate parties to collect said assessment. At the option of the Board of Directors, each monthly assessment and each special assessment may be considered to be separate distinct and personal debts and obligations of the Unit Owner against whom the same are assessed at the time the assessment is made and shall be collectable as such. Suit to recover a money judgment for unpaid common expenses shall be maintainable without foreclosures or waiving the lien securing the same. The Board of Directors, on behalf of the Association, shall have the authority to effect the lien procedures provided for in R.S.A. Chapter 356-B:46, with regard to any unpaid assessments.

SECTION 10. Interest and Counsel Fees. The Board at its option shall have the right in connection with the collection of any Common Expense assessment, or other charge, to impose a late charge of any reasonable amount and/or interest at the legal maximum rate permitted by law for the payment of delinquent real estate taxes, if such payment is made after a date certain stated in such notice. In the event that the Board shall effectuate collection of said assessments or charges by resort to counsel or the filing of a lien, the Board may add to the aforesaid assessments or charges a sum as reasonable counsel fees, plus reasonable costs for the preparation, filing and discharge of the lien, in addition to such other costs as may be allowable by law.

(a) In the case of any action or proceeding brought or defended by the Association or the Board pursuant to the provisions of these By-laws, the reasonable costs and expenses of preparation and litigation, including attorneys fees, shall be a Common Expense allocated to all Unit Owners.

(b) Money judgments recovered by the Association in any action or proceeding brought hereunder, including costs, penalties or damages shall be deemed a special fund to be applied to (1) the payment of unpaid litigation expenses; (2) refunding to the Unit Owners the cost and expenses of litigation advanced by them; (3) Common Charges, if the recovery thereof was the purpose of the litigation; (4) repair or reconstruction of the Common Elements if recovery of damages to same was the motivation for the litigation; and (5) any amount not applied to (1), (2), (3) and (4) above shall at the discretion of the Board to be treated either as (i) common surplus which shall be allocated and distributed pursuant to the provisions of paragraph 6 of the Condominium Declaration or as (ii) a setoff against Common Charges generally. Notwithstanding the foregoing, if a Unit Owner (a), the Board or any other person or legal entity affected by any such distribution, shall assert that the damages sustained or the diminution in value suffered by a Unit Owner(s) was disproportionate to his or their percentage of common interest, in that event the matter shall be submitted to binding arbitration to be decided in accordance with the procedures set forth in Article XVII hereof.

(c) All Common Charges received and to be received by the Board, for the purpose of paying any judgment obtained against the Association or the Board and the right to receive such funds, shall constitute trust funds which shall be expended first for such purpose before expending any part of the same for any other purpose.

(d) In the event that a Unit Owner(s) succeed in obtaining a judgment or order against the Association or the Board, then in addition to any other sums to which said Owner(s) would otherwise be entitled by such judgment or order, he or they shall also be entitled to the restitution or recovery of any sums paid to the Board as Common Charges for litigation expenses in relation to said action or proceeding.

SECTION 12. Power of Attorney to Institutional Lender. In the event the Board shall not cause the enforcement procedures provided in Section 9 above to be implemented within the time provided, any Institutional Lender for any Unit as to which there shall be such unpaid Common Expense assessments is hereby irrevocably granted a power of attorney to commence such actions and to invoke such other remedies, all in the name of the Association. This power of attorney is expressly stipulated to be coupled with an interest in the subject matter.

SECTION 13. Annual Audit. The Board shall submit the books, records, and memoranda of the Association to an annual audit by two volunteer Unit Owners, to be named at the Annual Meeting, who shall audit the same and render a report thereon in writing to the Board and in summary form to the Unit Owners and such Institutional Lenders or other persons, firms or corporations as may be entitled to same. Current, newly-elected and outgoing Members of the Board of Directors and their spouses are not eligible to perform the audit. If two volunteers do not step forward at the Annual Meeting, the Board shall hire an Independent Certified Public Accountant to complete the task and assess the Unit Owners equally for the cost of the audit.

SECTION 14. Examination of Books. Each Unit Owner shall be permitted to examine the books of account of the Board by appointment at a reasonable time on business days; provided, however, that the Treasurer has been given at least 10 days prior written notice of the Unit Owner's desire to make such an examination.