Collection Policy - Pecan Plantation Owners Association

Policy

Revision A

Change A-5

PECAN PLANTATION OWNER'S ASSOCIATION

POLICY STATEMENT

SECTION 8: COLLECTION POLICYA-14 – (Entire Section affected)

In order to comply with provisions of Chapter 209 of the Texas Property Code, and to protect the interest of the entire community, PPOA maintains that the best course of action to safeguarding the community’s assets is to collect assessments and charges on accounts in a timely manner. This policy guideline is intended to comply with all applicable provisions of Texas statutes and laws, and shall be interpreted and applied so as to comply with such laws. The following guidelines are implemented as collection procedures.

Payment in full of all amounts at any step during this procedure shall suspend further action of this procedure.

Step 1: Payments received after the due date are considered past due, will incur a late fee, and the entire amount due shall automatically be transferred to a Payment Plan as set forth below.

The Association may cause to be sent one or more of the following notification(s) to delinquent Owners:

          Step 2: If payment has not been received by the last day of the month, a past due notice may be placed on the statements.

          Step 3: If the account remains past due on the 10th of the following month, notice may be sent that the account will become “Cash Only” after the due date of the current statement.

Step 4: If the account becomes one (1) full month past due, it will be made “Cash Only” and will be charged interest from the original due date. A “Notice Prior to Enforcement Action” letter will be sent by certified mail, return receipt requested, and a handling and certified mail expense will be charged.

Step 5: An owner may not be charged fees of a collection agent (as same is defined in Property Code §209.0064) unless the Association first provides

written notice to the owner by certified mail, return receipt requested, that:

a. Specifies each delinquent amount and the total amount of the payment required to make the account current;

b. Describes the options the owner has to avoid having the account turned over to a collection agent, including information regarding availability of a payment plan through the association; and

c. Provides a period of at least thirty (30) days for the owner to cure the delinquency before further collection action is taken.

Step 5A No Hearing Requested: If a hearing is not requested within 30 days from receipt of the Notice, member privileges will be suspended, the account may be sent to the attorney for collection and attorney fees and expenses will be charged.

Step 5B Hearing Requested: Further collection procedures are suspended until the hearing process is completed. The Board of Directors shall set a hearing date not later than 30 days after receipt of owner’s request for a hearing. Either party may request a postponement, which shall be granted for a period of not more than ten (10) days. Additional postponements may be granted by agreement of both parties. Further collection steps will be determined by the action of the Board of Directors.

PAYMENT PLAN

The Association hereby establishes a Payment Plan schedule by which an owner may make partial payments to the Association for delinquent regular or special assessments, or any other amount owed to the Association without accruing additional

monetary penalties. Monetary penalties do not include interest or reasonable costs associated with administering the Payment Plan.

1. The term for the Payment Plan is six (6) months;

2. A Payment Plan shall require twenty percent (20%) of the delinquent amount

to be paid at the inception of the Payment Plan, with the balance being due a

payable in five (5) equal payments due on the first day of each month;

3. An Owner, upon written request, may request a longer period of time;

4. The Association is not required to honor the terms of a previous Payment Plan

during the two (2) years following an owner’s default under a previous

Payment Plan.

APPLICATION OF PAYMENTS

1. Except as provided in subsection 2 immediately below, a payment received by the Association shall be applied in the following order of priority:

a. Any delinquent assessment;

b. Any current assessment;

c. Attorney’s fees or third party collection costs incurred by the Association associated solely with assessments or other charge that can be the basis of foreclosure;

d. Attorney’s fees not subject to “c” above;

e. Fines

f. Any other amount owed to the Association;

2. If/when an owner defaults on a Payment Plan, payment(s) received by the Association shall be applied in the following order of priority:

a. Costs;

b. Attorney fees;

c. Interest;

d. Late Fees;

e. Delinquent assessments;

f. Current assessments

g. Fines

As to each category, payment shall be applied to the most-aged charge first. The acceptance of a partial payment on an owner’s account does not constitute a waiver of the Association’s right to collect the full outstanding balance due on said owner’s account.

An owner will be assessed a service charge for any check that is returned or Automatic Clearing House (ACH) debit that is not paid for any reason, including but not limited to Non-Sufficient Funds (NSF) or stop payment order. The amount of the service charge

assessed will be the customary amount charged.

APPROVED BY THE BOARD OF DIRECTORS

DATE: __November 3, 2011________

Change A-5

Change A-14


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Pecan Plantation Owners Association	8650 Westover Court	Granbury, Texas 76049	T. 817.573.2641
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