meeting called, the presence of members or of proxies entitled to cast forty percent (40%) of all the votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half (½) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than 60 days following the preceding meeting.

Section 4.   Both annual and special assessments may be fixed by the Board of Directors, in its discretion, at (i) a uniform or same rate for all Lots, or (ii) a two tier rate system distinguishing between those Lots with residential dwellings (Improved Lots) and those Lots not yet built upon (Vacant Lots), or (iii) a blended rate which reflects costs and expenses that all Owners should pay (including, but not limited to, liability and property insurance, Common Area maintenance, capital improvements, etc.), and costs and expenses that only some Owners residing on the Properties benefit from (including, but not limited to, trash pick-up and removal, snow plowing, etc.) or (iv) some policy determined by the Board of Directors that is reasonably related to the services and benefits received by an Owner.

Section 5.   Any assessment or installment thereof not paid within thirty (30) days after the due date shall be subject to a late charge not to exceed five per centum (5%) of such assessment or installment thereof and shall bear interest from the date of delinquency at the rate of twelve per centum (12%) per annum until the payment is received by the Association. Further, in any case where an assessment is payable in installments, upon a default by an Owner in the payment of any installment when due, the required payment date or dates of the remaining unpaid installments of such assessments may be accelerated, at the option of the Board of Directors, and the entire balance of such assessment may be declared due and payable in full by the service of notice to such effect upon the defaulting Owner by or on behalf of the Board of Directors.

The Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien against the property. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area, Trail Facilities or abandonment of his Lot.

Section 6.   The lien of the assessments provided for herein shall be subordinate to the lien of any first deed of trust or mortgage. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to first mortgage foreclosure, or any proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer, except to the extent the Association may be entitled to any surplus sales proceeds as a