Delinquency can be costly Interest, Collection Costs, and Attorneys' Fees Owed On Delinquent Amounts         Pursuant to Art. VI, § 5, of the MMWC By-Laws, interest accrues at a rate of 1.5% per month.  Such interest may be compounded.  C.R.S. § 5-12-103(3).  Pursuant to C.R.S. § 7-42-104(4) and Art. VI, § 5, of the MMWC By-Laws, MMWC may sue a member for the amount due.  Delinquent members are also obligated to pay any attorneys' fees and costs which MMWC may have incurred to collect the delinquent assessment or charges Forfeiture State law empowers a mutual ditch and reservoir company to "prescribe by bylaws for a forfeiture or sale of stock on failure to pay the installments or assessments that from time to time may become due."  C.R.S. § 7-42-104(3).  Art. VI, § 5 of MMWC's By-Laws provide that "Memberships and Certificates of any member who becomes delinquent in the payment of any assessment or other charge due the Corporation may be forfeited to the Corporation and/or sold, after demand has been made for the amount due, either in person or by written or printed notice duly mailed to the last known address of such member at least thirty days prior to the time the forfeiture is to take effect."  Any time before the forfeiture occurs, the delinquent member can prevent the forfeiture by "paying all amounts due plus all costs in the matter, including attorneys' fees." If you wish to allow your membership in MMWC to be forfeited, please realize that it will very likely significantly affect the value of your property.  Your lot will no longer have water service from MMWC. Moreover, even if you choose to let your membership be forfeited, you are prohibited -- under covenants that run with the land, among other legal impediments - - from installing your own well or water supply system.  See Amended and Consolidated Declarations of Protective Covenants of Cripple Creek Mountain Estates, dated March 16, 2005, at § 2.1(b) ("No water ... drilling ... of any kind shall be permitted within the Subdivision...."); § 2.1(f) ("No individual water supply system shall be constructed or allowed in the Subdivision.  Water will be provided and distributed in accordance with the Articles of Incorporation and By-laws of the authorized mutual water company....."). Importantly, MMWC is under no obligation to reinstate or sell a membership to the owner of a lot whose membership has been forfeited.  Although MMWC presently allows owners of lots with forfeited memberships to buy a membership, MMWC could discontinue that practice at any time.  A CCME lot owner who forfeits their membership risks forever forfeiting the opportunity to develop their lot. Copyright © 2009-2011 MMWC Director Eric W. Cernyar