Image Up Advertising & Design

12 | THE COLONY NEWS | JANUARY 2022 | HOA NEWS 30. Will the "Performance Deed of Trust" stay? Response: Yes. It is a recorded document and runs with the land. 31. What is the value of the "Performance Deed of Trust"? Response: It gives us the authority to enforce the deed restrictions that burden the golf course property and to foreclose on the golf course if the deed restrictions are not complied with. 32. Does the Judge have the power to influence the sale in favor of The Colony? Response: No. The Judge must remain neutral. 33. Will the assessment be the same for all houses, regardless of size of house/lot? Response: Yes, the Association's governing documents requires that assessments be set equally for all members. 34. Since we are a not-for-profit corporation, how can the Association get money generated by the golf course operations and still comply with the tax laws that govern not-for-profit corporations? Response: This is a question that we are currently exploring with our CPA on how to best configure any ownership of the golf course. Ideally, any profits from the golf course operation would be transferred to the general account and could increase owner equity or be transferred into the reserve account. Again, these are details that we are discussing with our CPA. 35. The wild birds are protected so the golf course cannot be developed. Has anyone from the Association contacted the Department of Fish and Wildlife to verify if the golf course property can be developed? Response: The entire golf course property is not a protected habitat. Regardless, the important issue is not whether or not the golf course property can, or will, be developed. The important issue is keeping the golf course operation open. If the golf course operation closes, there will be no maintenance of the golf course property. 36. The Board's preliminary numbers are based on $1,250,000, not the $3,400,000 lien currently on the golf course property. Why are we afraid of foreclosure? Response: We are not completely sure what is meant by this question. However, the Performance Deed of Trust has a subordination clause that allows the owner of the golf course to encumber the golf course property with a trust deed of up to $1,250,000. Any encumbrance after that amount is secondary to the Performance Deed of Trust. If the court deems the $3,400,000 deed of trust a fraudulent transfer and extinguishes it, then the golf course property is free and clear. If the $3,400,000 deed of trust remains in place, only $1,250,000 of that amount is superior to the Performance Deed of Trust. 37. How strong is our legal representation? Response: We have full confidence in our attorneys who have successfully represented the Association in this litigation for over 9 years and the Epsten firm who has been the Association's counsel for more than 15 years. 38. Maybe those who can pay more can help those who cannot? Response: That is up to the individuals. 39. Who pays if we own the golf course and there is a catastrophic accident? Response: The Association would adequately insure the golf course property to protect against this. The Association would treat the golf course the same as its existing common areas and facilities. 40. New people recently moving into community say they were not informed about course and litigation. Some upset, others are not. Response: The sellers, not the Association, have the legal obligation to make disclosures to prospective buyers. 41. If the Judge orders foreclosure of the golf course property, can Majestic Asset et al bid on the property at auction? Response: No. Current law forbids it. 42. Who will run the golf course operations if the Association acquires it? Response: The Association would hire a professional golf course management company to operate and maintain the golf course. 43. What will the Association pay if we need to bid at a foreclosure auction? Response: There is a not-to-exceed number but, for obvious reasons, the Board chooses not to disclose that number at this time so as to not prejudice itself if there is a foreclosure auction where other parties might also be submitting bids. 44. How long will it take to buy course in foreclosure, % of vote needed to buy, what other avenues will be used to keep community informed? Response: The timing to purchase anything in foreclosure is uncertain. Typically, the Court will issue the foreclosure order, followed by a sale date on the Courthouse steps (the time between is uncertain). There will be a Town Hall meeting in advance of any vote to approve the possibility of acquiring the golf course Continued on following page Continued from previous page

• Cover