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of the Association may fix the Annual Assessment in an amount determined by it to be necessary or desirable to pay such expenses for one year at a time. (b) Annual Assessments shall be due as to all Lots on the first day of the month following the conveyance of the first Lot by the Declarant to any purchaser. The first Annual Assessment may be adjusted according to the number of months remaining in the Association's fiscal year. The Board of Directors shall fix the amount of the Annual Assessment against each Lot at least thirty (30) days in advance of each fiscal year. Written notice of the Annual Assessment shall be sent to every Owner. The due dates shall be established by the Board of Directors and may be no more frequently than monthly and no less frequently than semi-annually. Section 4 . Emergency Fund Assessments. (a) The Association shall establish a separate fund to meet unforeseen expenses or emergencies (the '�Emergency Fund") . The Emergency Fund shall at all times be equal to two (2j months estimated Annual Assessment for each Lot, but the amounts paid into the Emergency Fund shall not be considered advance payments of Annual Assessments. (b) The Emergency Fund shall be established by "Emergency Fund Assessments. " Each Lot's share of the Emergency Fund shall be collected from the Owner at the closing of the sale of the Lot from the Declarant to the Owner. Within one year after the closing of the sale of the first Lot, the Declarant shall pay each unsold Lot's share of the Emergency Fund to the Association. The Declarant shall be reimbursed for this payment from funds collected from the various Lot Owners at the closings of the sale of the Lots from the Declarant to the Owners. (c) Whenever the Emergency Fund is depleted below the level set forth in Subsection (a) , the Association shall replenish the Emergency Fund by levying additional Emergency Fund Assessments against all the Lots and their respective Owners. Section 5. Sinking Fund Assessments. (a) The Association shall establish a separate reserve fund ("Sinking Fund") to provide cash for major repairs and replacement of those improvements in the Common Area and elsewhere that will, after a number of years, need major repairs or replacement. Such improvements include, without limitation, the road, the sanitary sewer laterals, the storm sewer facilities, water mains, the entrance monuments and the pedestrian trail. (b) The Board of Directors shall, in good faith, determine the useful life of such improvements and an appropriate schedule of "Sinking Fund Assessment" such that each year the Sinking Fund 10