The Board of Directors is authorized to impose fines and monetary penalties under schedules of reasonable fines and penalties for common or recurring violations of the Governing Documents.

When the Board is to meet to consider or impose discipline upon a homeowner the Board shall notify the homeowner in writing at least 10 days prior to the meeting. The notice shall contain the nature of the alleged violation and a statement that the homeowner has the right to attend the meeting and may address the Board. If the Board imposes discipline on a homeowner, the Board will provide written notification of the disciplinary action within 15 days following the action.

The below schedule of fines will serve as a guideline for the imposition of appropriate penalties in the context of member disciplinary proceedings. However, alternative appropriate corrective penalties may be applied if the circumstances warrant a greater or lesser fine.

A) Fines for violation of Declaration of Restrictions: (The second and subsequent offenses are intended to mean violations of a similar nature where the homeowner has allowed the violation to continue uncorrected or to reoccur.):

· First Offense: Courtesy Notice and warning of potential fine if not rectified within the specified period of time.

· Second Offense or an uncorrected initial offense: $ 25.00

· Third Offense or continuing uncorrected offense: $ 50.00

· Fourth & Subsequent Offenses or continuing uncorrected offense: $ 100.00

When an offense goes uncorrected beyond a specified “correct by” date an additional fine is imposed per the above increments and the homeowner is given notice of a new correction date.

Parking Violations: (separate charges apply to each vehicle)

· First Offense: Courtesy Notice and warning of potential fine if not rectified within the specified period of time.

· Second Offense or an uncorrected initial offense: $ 10.00 per day

· Third Offense: $ 15.00 per day

· Fourth Offense: $ 25.00 per day

B) Architectural Violations: Fines or remedies for Architectural violations will be dealt with on an individual basis taking into consideration the severity of the infraction, prior infractions and the detriment to neighboring properties and / or the Association.

C) Assessments are due on the first day of the month following the billing and are delinquent if not paid by the fifteenth day of the month. If an assessment becomes delinquent, the owner shall incur a late charge of $10.00.

D) If delinquent assessments and late charges remain unpaid thirty days following the due date, the delinquent amounts shall begin to bear interest at a rate of ten percent (10%) per annum from the due date until paid.

E) If assessments remain unpaid for a period of 60 days or more, the owner’s account shall be referred to legal counsel or a collection agency to initiate a lien as authorized by California Civil Code Section 1367. Owner shall be liable for fees incurred in the collection process.

F) In lieu of pursuing foreclosure remedies, the Association may refer a delinquent owner’s account to the Association’s Managing Agent with instruction to initiate a Small Claims Court action to recover any fines duly imposed by the Association which are not paid when due.