LAKEWEST CONDOMINIUMS

Notwithstanding any other provisions of the Declaration and as provided in the Washington Condominium Act, the liens created under this Declaration upon any Apartment for Assessments shall be subject to (a) Liens and encumbrances recorded before the recording of the Declaration; (b) a Mortgage on an Apartment recorded before the date on which the assessment sought to be enforced became delinquent; and (c) liens for real property taxes and other governmental assessments or charges against the Apartment. A lien for Assessments is not subject to the provisions of Chapter 6.13 RCW regarding homesteads. Except as provided below in Section 19.3, the lien shall also be prior to the Mortgages on an Apartment recorded after the date of recording of this Amendment to Declaration to the extent of Assessments for common expenses, excluding any amounts for capital improvements, based on the periodic budget adopted by the Association which would have become due during the six months immediately preceding the date of a sheriffs sale in an action for judicial foreclosure by either the association or a mortgagee, the date of a trustee's sale in a non-judicial foreclosure by a mortgagee, or the date of recording of the declaration of forfeiture in a proceeding by the vendor under a real estate contract. All taxes, assessments and charges which may become liens shall relate only to the Apartments and not to the Condominium as a whole.

The priority of the Association's lien against Apartments encumbered by a Mortgage held by an Eligible Mortgage Holder or by a Lender which has given the Association a written request for a notice of delinquent assessments shall be reduced by up to three months if and to the extent that the lien priority under Section 19.2 includes delinquencies which relate to a period after such Lender becomes an Eligible Mortgage Holder or has given such notice and before the Association gives the Lender a written notice of the delinquency.

In addition to constituting a lien on the Apartment and all of the appurtenances to the Apartment, each Assessment, including interest, late charges, costs and attorney's fees in the event of delinquency, shall be the joint and several personal debt and obligation of the fee owner or owners and the contract purchasers of Apartments for which they are assessed as of the time the Assessment is made, and, except as provided in Section 19.2, their grantees and successors in interest. In connection with the voluntary conveyance of an Apartment, the grantee or successor in interest shall be jointly and severally liable with the grantor for all unpaid Assessments up to the time of conveyance, without prejudice to the grantee's right to recover from the grantor the amount paid by the grantee therefor. Suit to recover personal judgment for any delinquent Assessments shall be maintainable without foreclosing or waiving the liens securing the Assessments.

The Board may from time to time establish late charges and a rate of interest to be charged on Assessments that may in the future become or remain delinquent. In the absence of other established non-usurious rates, the late fee on delinquent Assessments shall be Twenty-Five Dollars ($25.00) per month, which shall be added to any account which is not paid in full on the fifteenth (15th) day of each month, and the interest rate applicable to any account which is delinquent for more than thirty (30) days shall be one percent (1%) of the delinquent balance per month, compounded monthly.

In addition to any attorney's fees and costs recoverable in an action brought under Section 19.5 or Section 19.12, the Association shall be entitled to recover any costs and reasonable attorney's fees incurred in connection with the collection of delinquent Assessments, whether or not the collection activities result in suit being commenced or prosecuted to judgment. In addition, the prevailing party shall be entitled to recover costs and reasonable attorney's fees on appeal and in the enforcement of a judgment, whether in the State of Washington or a sister state.

The Board or managing agent on behalf of the Association may initiate an action to foreclose the lien of any Assessment judicially in the manner provided for mortgages. In any action to foreclose a lien against an Apartment for nonpayment of delinquent Assessments, any judgment rendered against the Apartment or the Owners of the Apartment in favor of the Association shall include a reasonable sum for attorney's fees and all costs reasonably incurred in preparation for or in the prosecution of the action in addition to taxable costs permitted by law.

The Board, or other body or person (“Hearing Board") so designated by the Board is authorized and empowered, as provided in due process procedures adopted by the Board, to investigate, hear and determine all complaints concerning violations by any Apartment Owner, Occupant, Tenant or Related Party of any provision of the Governing Documents or of any Board Decision and to order compliance therewith. The Hearing Board is further authorized and empowered to levy reasonable fines against any person who shall have been found to be in violation of any provision of the Governing Documents or Board Decision after notice stating the nature of the violation and an opportunity for a hearing and to require-the non-prevailing party to reimburse the Association for its costs, including reasonable attorney fees, in connection with the matter. Fines shall not exceed the maximum amounts to be established from time to time by resolution of the Board. Fines and costs shall constitute Assessments secured by a lien upon any Apartment belonging to or occupied by the person against whom they were assessed and shall be collectable in the manner provided herein for the collection of Assessments. The hearing shall be conducted as provided in due process procedures to be adopted by the Board. If a Hearing Board other than the Board is designated in the due process procedures, any party to a matter heard by the Hearing Board shall have the right to appeal the decision of the Hearing Board to the Board on the record of the proceeding before the Hearing Board. Any member of the Hearing Board or the Board who is incapable of impartial, disinterested and objective consideration of the case shall disclose that fact to the respective body and shall remove himself or herself from participation in the proceedings and have it so recorded in the minutes.