Sec. 209.0063. PRIORITY OF PAYMENTS. (a) Except as provided by Subsection (b), a payment received by a property owners' association from the 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 reasonable attorney's fees or reasonable 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 reasonable attorney's fees incurred by the association that are not subject to Subdivision (3); (5) any reasonable fines assessed by the association; and (6) any other reasonable amount owed to the association. (b) If, at the time the property owners' association receives a payment from a property owner, the owner is in default under a payment plan entered into with the association: (1) the association is not required to apply the payment in the order of priority specified by Subsection (a); and (2) in applying the payment, a fine assessed by the association may not be given priority over any other amount owed to the association.
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