ARTICLE TWELVE – ASSESSMENTS
1. Assessments: Assessments for the installation, depreciation, maintenance and operation of the pipelines and water system owned by the Company may be levied by the Board on the membership from time to time as deemed necessary, and any such assessments shall be delinquent thirty (30) days from the date of the call therefor, mailed postage prepaid from the office of the Company to such membership at their addresses on file with the Secretary.
2. Rates: The Board, in levying assessments, shall provide for a repair and replacement fund, as required by the regulations of the Department of Corporations [10 Administrative Code 2184.108.40.206(b)(3)]. The Board, in levying assessments, shall set rates that are sufficient to create and build such a fund which will both repair and replace the system as is necessary, and when the system outlives its useful life. "Useful life" shall be set on recommendation of the civil engineer representing the Company and amortization shall include an anticipated inflationary rate of seven percent (7%) per annum over the original cost of the system.
3. No Distinction: In levying assessments. no distinction shall be made between improved and unimproved lots as to maintenance, installation and depreciation of the system, but the Board may distinguish between improved and unimproved lots with regards to current operating costs.
4. Delinquent Assessments: Delinquent assessments shall be subject to such penalties as may be fixed by the Board. Failure of any member to pay any assessment when due may, in the discretion of the Board, constitute a forfeiture of the right to use water from the Company system. However, the defaulting member shall be entitled to a hearing before the Board at a time and place to be fixed by the Board and the decision of the Board at any such hearing shall be final.
5. Certificate of Lien: The Board is authorized to record a notice or certificate of lien against a member's property if the member has not timely paid any rate, charge, or assessment arising from, or related to, water services provided by the Company to the member's property, provided the member is given at least 20 days notice of the lien.