Seven Oaks Subdivision Indentures 

(Section IV: Assessments)

IV. ASSESSMENTS

            The Trustees and their successors and assigns are hereby authorized, empowered and granted the right to make assessments upon and against the several lots and said parcels of land in the Subdivision for the purpose herein stated and at the rate hereinafter provided, and in the manner and subject to the provisions of this instrument:

1.         a.         The Trustees and their successors and assigns are authorized to make uniform assessments, except as hereinafter provided, of an amount not to exceed One Hundred and Fifty Dollars ($150.00) per lot in each calendar year upon and against the lots on which a residence has been erected in said subdivision for the purpose of carrying out any and all of the general duties and powers of the Trustees as herein described and for the further purpose of enabling the Trustees to defend and enforce restrictions, adequately to maintain streets, if required, Common Ground, utilities, recreational facilities, and to dispose of garbage or rubbish, to perform or execute any powers or duties provided for in this instrument, or otherwise properly to protect the health, safety and general welfare of the residents in said Subdivision.

b.                  Commencing with the sixth annual assessment to be made hereunder, and each five years thereafter, the fixed annual assessment per lot shall not exceed the great of (i) $150.00, or (ii) the number of dollars equivalent to the purchasing power of $150.00 for the month in which this Indenture is recorded.  Such number of dollars shall be determined by dividing $150.00 by the index for said month of recording as computed in the Consumers Price Index made by the Bureau of Labor Statistics of the United States Department of Labor, and then multiplying the quotient by the similar index number for the month in which the sixth annual assessment (and each succeeding sixth annual assessment thereafter) commences.  If the Bureau of Labor Statistics shall change the base period in effect during the month in which this Indenture is recorded, the new index figure applicable as a divisor and multiplier shall be correspondingly changed.  In the event such statistics shall no longer be available, the most nearly similar statistics showing the purchasing power of United States Dollars shall be used instead, and the table to be used shall be designated by the Trustees.

c.                   If at any time the Trustees shall consider it necessary to make any expenditure requiring and assessment additional to the assessments above provided, they shall submit in writing to the owners of lots for approval an outline of the plan for the project contemplated and the estimated amount required.  If such project and the assessment so stated be approved either at a meeting of the owners of lots called by the Trustees, upon not less than ten (10) days written notice, by a two-thirds (2/3) majority vote of those present in person or by proxy, or on written consent of two-thirds (2/3) of the said owners, the Trustees shall notify all owners in said tracts of the additional assessment.  The limit of the annual assessments for general purposes as set forth in 1 (a) above, shall not apply to any assessment made under the provision of this paragraph 1 (c).

d.                  In the event the Trustees exercise the right granted them under Article III Paragraph 9 hereof to enter and clean up any vacant lot or neglected property the Trustees may assess against said lot the cost of the work involved plus 20% for overhead and carrying charges.

e.                   Lots not improved with a residence five (5) years from the date of recording of the plat creating said lots shall be annually assessed at the same rate a lot improved with a residence is assessed.

2.                  All assessments, made by the Trustees for the purposes hereinabove enumerated, shall be made in the manner and subject to the following procedure, to-wit:

a.                   The Trustees shall annually prepare a budget in which the anticipated revenue and anticipated expenditures for the ensuing calendar year are set forth.  The Trustees shall attempt to limit the anticipated expenditures so that the same do not exceed the anticipated revenues.

b.                  Notice of all assessments may be given by mail addressed to the last known or usual post office address of the holder of a fee simple estate and deposited in the United States mail with postage prepaid, or may be given by posting a brief notice of the assessment upon the lot or dwelling unit itself.

c.                   Every such assessment shall become due and payable with thirty (30) days after notice is given as hereinabove provided.  From and after the date when said payment is due, it shall bear interest at the rate of ten percent (10%) per annum until paid, and such payment and interest shall constitute a lien upon said lot, and said lien shall continue in full force and effect until said amount is fully paid.  At any time after passage of the resolution levying an assessment and its entry in its minutes, the Trustees may, in addition, execute and acknowledge an instrument reciting the levy of the assessment with respect to any one or more lots or dwelling units and cause same to be recorded in the Recorder’s Office in the County of St. Louis, State of Missouri, and the Trustees may, upon payment, cancel or release any one or more lots or dwelling units from the liability of assessments (as shown by recorded instrument) by executing, acknowledging, and recording (at the expense of the owner of the property affected) a release of such assessment with respect to any lot or dwelling unit affected, and the Trustees shall cause to be noted from time to time in the minutes of the proceedings, the payments made on account of any assessments.

3.                  Assessment may be enforced in the same manner as is provided by law for the enforcement of special tax liens against real estate, except that the lien or liens for assessments hereunder shall be subordinate and junior to any first mortgage or deed of trust of record insured by the Federal Housing Administration, the Veterans Administration or any other agency of the United States or the State of Missouri and to any other bona fide first mortgage or deed of trust if given for a valid consideration and if not placed on record for the purpose of defeating creditors and evading the assessments provided for herein; provided, however, that the terms and provisions shall be and remain fully applicable to all of the land subject hereto after foreclosure of any deed or trust or mortgage and any and all lot owners subsequent to such foreclosure shall be fully subject to any assessments provided for herein and subsequently to such foreclosures.  Should an owner pay an assessment after the recording of notice thereof, as herein provided, the Trustees shall release said lien.

4.                  The Trustees shall deposit the funds coming into their hands as Trustees in a State or National Bank, protected by the Federal Deposit Insurance Corporation, or in a savings and loan association protected by the Federal Savings and Loan Insurance Corporation, at interest, when deemed feasible by them, in their discretion.  The Trustees shall designated one of their number as “Treasurer” of the Subdivision funds collected under this instrument and said funds shall be placed in the custody and control of such Treasurer.  The Treasurer shall be bonded for the proper performance of his duties in an amount to be fixed by the Trustees.

5.                  The assessment provisions of this Indenture shall not apply to any vacant lot owned by Owner, nor to any lot having thereon a building which lot and building are offered for sale by the Owner, but if a residence retained by Owner is occupied it shall be subject to the assessment provisions hereof.

6.                  The initial annual assessment against a lot shall begin on the first day of the month beginning after the date the original home purchaser took title from Owner or in the event of a residence retained by Owner on the date the residence was first occupied and the initial amount of assessment due shall be an amount equal to the fraction of the year remaining times the annual assessment for that calendar year.  Thereafter the total annual assessment shall be due against the lot regardless of whether or not the residence is occupied.