Enforcement of assessment.

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  • (1) Payment of a delinquent assessment may be enforced by a corporation in one or more of the following ways:
    • (a) imposition of a late charge, penalty, or interest;
    • (b) suspension of one or more benefits of share ownership, including the right to vote, to transfer shares, or to delivery of water in the case of a water company;
    • (c) sale at public auction of the shares on which payment is delinquent; and
    • (d) any other enforcement method specified in the corporation's articles of incorporation.
  • (2) In an enforcement action, the corporation may recover the delinquent assessment, any late charge, penalty, or interest, and all costs of collection, including attorney fees.
  • (3)
    • (a) The board of directors shall follow enforcement procedures:
      • (i) as set forth in the articles of incorporation or bylaws; or
      • (ii) as determined by the board of directors in a manner consistent with the board of directors' fiduciary duty to shareholders.
    • (b) If the board of directors determines to sell shares at public auction, the board shall follow the procedures required by Sections 16-4-302 through 16-4-312.




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