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12 <br />an amount equal to $500.00 per Unit. The contribution shall be paid by the Unit purchasers at the earlier of the <br />time of closing of sale of the Unit or by the Declarant at the time of termination of the Declarant Control Period <br />as to then unsold Units. The contributions to this fund are in addition to the regular installments of annual <br />Assessments. The Board may include in each subsequent annual budget a reasonable amount of working capital, <br />based upon the anticipated needs of the Association for the year in question. The funds shall be deposited into <br />an account of the Association (which need not be a segregated account) no later than the termination of the <br />Declarant Control Period. Funds deposited in said account may be used to fund replacement reserves or for <br />operations of the Property or the Association. Upon the closing of the initial sale of a Unit, Declarant may <br />reimburse itself from funds collected from the purchaser at the closing for any prior contributions made by <br />Declarant to any reserve fund with respect to that Unit. <br /> <br />6.6. Liability of Owners for Assessments. The obligation of an Owner to pay Assessments shall <br />commence at the later of (i) the time at which the Owner acquires title to the Unit, or (ii) the due date of the first <br />Assessment levied by the Board. The Owner at the time an Assessment is payable with respect to the Unit shall <br />be personally liable for the share of the Common Expenses assessed against such Unit. Such liability shall be <br />joint and several where there are multiple Owners of the Unit. Subject to Section 6.7, the liability is absolute and <br />unconditional and no Owner is exempt from liability for payment of Assessments by right of set- off, by waiver <br />of use or enjoyment of any part of the Property, by absence from or abandonment of the Unit, by the waiver of <br />any other rights, or by reason of any claim against the Declarant, the Association or its officers, directors or <br />agents, or for their failure to fulfill any duties under the Governing Documents or the Act. <br /> <br />6.7. Declarant’s Liability for Assessments. Pursuant to Section 515B.3-1151 of the Act, the <br />Declarant is hereby authorized to establish an alternate common expense plan whereby the Declarant’s Common <br />Expense liability, and the corresponding assessment lien against the Units owned by the Declarant, is limited to: <br />(A) paying when due, in compliance with Section 515B.3.1-1151(b) of the Act, an amount equal to the full share <br />of replacement reserves allocated to Units owned by the Declarant, as set forth in the Association’s annual <br />budget, and (8) paying when due all accrued expenses of the CIC in excess of the aggregate assessments payable <br />with respect to Units owned by persons other than Declarant, provided that the alternate common expense plan <br />shall not affect Declarant’s obligation to make up any operating deficit pursuant to Section 515B.3-115l(a)(2)(iv) <br />of the Act. <br /> <br />6.7.1. Duration of Alternate Common Expense Plan. The alternate common expense plan <br />shall be effective for a period of not less than one year but shall in any event terminate upon the <br />termination of the Declarant Control Period unless terminated earlier pursuant to Section 515B.3-1151 <br />(a)(2)(iii) of the Act. <br /> <br />6.7.2. Level of Services. The alternate common expense plan shall have no effect on the level <br />of services for items set forth in the Association’s budget. <br /> <br />6.7.3. Accounting Obligations Associated with Use of Alternate Common Expense Plan. If <br />Declarant utilizes an alternate common expense plan, Declarant shall cause to be prepared and delivered <br />to the Association, at the Declarant’s expense, within 90 days after the termination of the Declarant <br />Control Period, an audited balance sheet and profit and loss statement certified to the Association and <br />prepared by an accountant having the qualifications set forth in section 515B.3-121 (b) of the Act. The <br />audit shall be binding on the Declarant and the Association. <br /> <br />(i) If the audited profit and loss statement shows an accumulated operating deficit, <br />the Declarant shall be obligated to make up the deficit within 15 days after <br />delivery of the audit to the Association, and the Association shall have a claim <br />against the Declarant for an amount equal to the deficit until paid. If Declarant <br />does not utilize an alternate common expense plan, Declarant is not liable to <br />make up any operating deficit. <br /> <br />60