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| THE COLONY NEWS | JUNE 2021 | 9 HOA NEWS GOLF COURSE LITIGATION UPDATE, continued golf course transferred in excess of $250,000 out of the bank accounts for the golf course, allegedly as payments on the loans secured by the Deed of Trust. That left approximately $60,000 in the golf course bank accounts at the time the receiver took over. The golf course was able to open in May 2020, and under the management of the receiver and his team, it has done phenomenally well. Revenue from golf operations has increased over 100% from the previous year. The bar and grill were reopened on a limited, take-out only basis, and shows promise. With the revenue generated from operations, the receiver has been able to undertake a program to make the necessary repairs to the golf course, starting with the playing areas. It will take some time to complete the repairs to comply with the judgment, but we are confident that the receiver will be able to do this. The court held a status conference on March 10, 2021 to review the progress made by the receiver. At that hearing, the attorney for the owners of the golf course argued that the court should remove the receiver, return the golf course to the owners, declare that it is impossible to comply with the judgment and modify the judgment accordingly. Our attorney argued that the receiver is making good progress towards complying with the judgment, that his efforts were hampered by the owners of the golf course initially removing $250,000 from the bank account just before the receiver took over, and then by the shutdown of the golf course for 6-8 weeks due to the pandemic. The court agreed that the receiver is doing a good job and wants to see more progress. The court denied the owner's request to remove the receiver, set a new status conference for July 8, 2021 to review the progress of the receiver, and ordered the receiver to meet with the parties and their attorneys prior to the July hearing to go over plans for completing the necessary repairs to the golf course and a time frame for completion. That meeting is set for June 3, 2021. Again, we are hopeful that the receiver will be allowed to complete the task of restoring the golf course and setting in place a maintenance plan and procedure to assure that the golf course continues to be properly maintained. At some point, the court will remove the receiver and return the golf course to the owners. We expect that this will happen after the trial of the case to remove the fraudulent Trust Deed encumbering the golf course property. We are hopeful that the court will rule that the Trust Deed is indeed a fraudulent instrument and remove it. At the very least, we expect that the court would rule that all but $1.25 million of the Trust Deed is subordinate to the Performance Deed of Trust. If, after the receiver is removed, the owners again fail to maintain the golf course and the condition of the golf course once again violates the judgment, we can move the court to order the foreclosure of the golf course property. It would be sold at a foreclosure sale to the highest bidder and the golf course would then be under new ownership. The judgment is recorded against the property and any future owner or owners are bound by the terms of the judgment and it can be enforced against them also. However, if there are no bidders, we could ask for another receiver, but this is only a temporary remedy. While the receiver has shown that the golf course can be run efficiently and profitably, it requires an owner who is capable and wants to run the golf course as a golf course. If you are interested in serving on the Board of Directors, please complete the Candidate Statement form that was published in the May Colony News or obtain a copy from the table in front of the Clubhouse. The deadline for submittal is 5 pm on Friday, June 11. Applications must be submitted directly to The Inspectors of Election at info@theinspectorsofelection.com. Please note that this is a third-party company that has been contracted by the Board to collect the Candidate Statement applications and oversee the election. No applications will be accepted at the HOA Office. Interested in running for the Board of Directors?

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