Implementation of Revised Receivables Collection Policy - To be Delivered to Every Door Soon

Starting April 1^st ,2015, an interest rate of 2% per month will be automatically applied to ALL receivables not collected within 10 days of the invoice date (usually the 1^st of the month).

This has been a particularly difficult year to collect the money owed to our syndicate. The administration fees which are approved by our co-owners at our Annual General Meetings are intended to make people accountable towards their obligations to the other co-owners.

· For years we have charged an administration fee of $20 for anyone who owes the syndicate more than $100 of condo fees at month end.

· For the past 2 years we have charged $5 for anyone who paid their condo fees after the 1^st of the month when it forced an extra trip to the bank.

· 3^rd or 4^th letters from the administration carry $50 and $100 administration fees.

Lately, this has not been enough of an incentive and our receivables are climbing to the point where we need to do something about it. These are some of the situations we are currently facing:

· One co-owner owes us over $4,000 and has repeatedly not kept his promises. A lien on his condo being executed at this writing.

· Three people owe us $1,800 for repair bills that were paid by syndicate. Two of those cases have been referred to small claims court. The third will soon follow suit however the person involved has now also stopped paying condo fees and is now 2 months behind.

· One co-owner gave us an NSF cheque and when we charged him the prescribed administration fee to recover the bank fee, he postponed his payment. We still have not been paid.

The fact is that the vast majority of our owners act responsibly but issues such as these consume far too much of our time and attention. Therefore we are implementing strict collection rules as authorized by our DCO.

Declaration of Co-Ownership

Clause 14.5.3 of the DCO states:

14.5.3 Interest On Arrears

The arrears in payments required by virtue of any provision of the present declaration may bear interest at the rate establi­shed from time to time by the administrators, who may in addi­tion establish and impose an additional lump penalty and deter­mined by them by regulation from time to time.

Revised Receivables Collection Rules Starting April 1, 2015

1. Current administration fees continue including:

a. $20 administration fee for condo fees owed at the end of the month.

b. $5 administration fee for condo fees paid late during the month.

c. Administration letter fees of $50 (3^rd letter) and $100 (4^th letter)

2. By law, we are allowed to charge as much as 5% interest per month for ANY amount owed to the syndicate. Starting April 1^st,2015, an interest rate of 2% per month will be automatically applied to ALL receivables not collected within 10 days of the invoice date (usually the 1^st of the month).

Implications

• The easiest and best way to avoid these charges for condo fees is to provide the 12 postdated cheques dated the 1^st of the month as specified by our DCO.

· If you are leaving on vacation for months, ensure that you have provided for your obligations to the syndicate.

· Keep track of when your postdated cheques are due to run out and make sure we have your cheques when they are needed.

· If you pay on the 10^th of the month, you will be charged $5 for forcing an extra trip to the bank.

· If you pay on the 11^th of the month, you will be charged $5 for forcing a trip to the bank plus 10 days of interest at the rate of 2% per month.

· If you owe $4,000, you will be charged $80 interest at the end of the month.

· Keep in mind that condo fee increases generally occur on November 1^st each year. Often there is a retroactive amount to pay.

· Videotron Internet Group fees are due on January 15^th and for those who choose to pay in 2 installments, July 1^st.

· Private Outdoor Parking invoices are due November 1^st.

· Interest charges will be automatically calculated by the feature in our Condo Manager Software package. Our staff has no way to stop the charge. The system is being tested in March in order to be ready for April.

Thank you for your collaboration and your understanding.