At the time of the filing with the City of Moscow Mills, or Planning
and Zoning Commission, by the developer of the first final plat for
a subdivision, the developer shall also file proof satisfactory to
the City of Moscow Mills that the developer has deposited in a Trust
Account the sum of $2,000 for the benefit of subdivision lot owners,
other than the developer (the "Trust Account"). A land title company
or Federally insured banking institution selected by the developer
shall serve as trustee for this Trust Account. Any required compensation
for such service as trustee shall be paid by the developer. The instrument
of trust for the Trust Account shall specify that when 10 or more
lots are sold in the subdivision to lot owners other than the developer,
then upon written request of a majority of such lot owners other than
the developer, the trustee of the Trust Account shall pay over to
or for the benefit of said lot owners, or any attorney designated
by the said lot owners, up to the sum of $2,000 for the reasonable
costs and expenses of a lawsuit or lawsuits to enforce any subdivision
covenant and/or restriction which is not being enforced by the subdivision
managers. Said sum shall be paid over to said persons only when the
request for payment for said sum is accompanied by written proof that:
a. Demand has been made upon the subdivision managers for the subdivision
managers to sue to enforce such subdivision covenant or restriction,
but that the subdivision managers have failed or refused to comply
with such request, and;
b. Formal written demand has been made upon the person(s) or entity(ies)
allegedly not in compliance with the covenant or restriction, by which
demand was made that such person(s) or entity(ies) come into compliance
with the said covenant or restriction within a specified period of
time, not less than 10 days in length, but that the said person or
entity has failed to comply with the demand. This Trust Account shall
automatically expire and unexpended sums remaining in the Trust Account
shall be paid over to the subdivision managers at such time as all
subdivision managers are elected by the lot owners who are not the
developer.