Priority of Payments Policy

The following Policy for Priority of Payments was established by the Board of Directors (the “Board”) of the QCHOA, Inc. (the “Association”) on September 24, 2014 in accordance with Section 209.0063 of the Texas Property Code:

A.  Except as provided by Section B. below, a payment received by the Association from an owner shall be applied to the owner’s debt in the following order of priority:

 

  1. Any delinquent assessment;
  2. Any current assessment;
  3. Any attorney’s fees or third party collection costs incurred by the Association associated solely with assessments or any other charge that could provide the basis for foreclosure;
  4. Any attorney’s fees incurred by the association that are not subject to Subsection (3) above;
  5. Any fines assessed by the Association;
  6. Any other amount owed to the Association.

B.  If, at the time the Association receives a payment from an owner and the owner is in default under a payment plan entered into with the Association, the Association is not required to apply the payment in the order of priority outlined in Section (A), in accordance with Section 209.0063 of the Texas Property Code. Instead, in the event that an owner is in default under a payment plan at the time the Association receives a payment from the property owner, the payment received by the Association from an owner shall be applied to the owner’s debt in the following order of priority:

  1. Any attorney’s fees or third party collection costs incurred by the Association associated solely with assessments or any other charge that could provide the basis for foreclosure;
  2. Any attorney’s fees incurred by the association that are not subject to the immediately previous Subsection (l);
  3. Any delinquent assessment;
  4. Any current assessment;
  5. Any other amount owed to the Association.
  6. Any fines assessed by the Association.

This policy shall supersede and render null and void any previously adopted priority of payment/payment plan policy to the extent that the terms of such policy are contradictory.

This Policy Has Been Recorded in Rockwall County

Policies are "dedicatory instruments," which means that they must be recorded in the property records of Rockwall County.