VIOLATION OF CC&R’s and/or OPERATING RULES FINES SCHEDULE and PROCEDURES

Any violation of the CC&R’s and/or the Operating Rules are subject to fines and may also result in membership privileges being revoked. Owners are also responsible for any legal costs associated the collection of fines and/or enforcement of the CC&R’s and Rules. Fines listed below are charged for each violation. This fine schedule is subject to change by the Board of Directors.

In addition, all Owners are responsible for any damage they or their guests cause to the common property of Seven Oaks Community Center.

AGE RESTRICTION VIOLATION (under age residents):

$ 0.00 No Fine with the 1^st Notice

(Hearing to be scheduled within 14 days)

$ 300.00 Fine with 2^nd Notice PLUS

$ 50.00 per day beginning on the 15^th day after the date on the 1^st Notice and continues until violation has been corrected.

$ 300.00 Additional Fine with 3^rd Notice

$ 500.00 Additional Fine with 4^th Notice (Hearing to be scheduled with Board of Directors)

$1,000.00 Additional Fine if Member does not attend Hearing

ALL OTHER VIOLATIONS (CC&R’s and/or Operating Rules):

$ 0.00 No Fine with the 1^st Notice

(Hearing to be scheduled within 14 days)

$ 150.00 Fine with 2^nd Notice PLUS

$ 25.00 per day beginning on the 15^th day after the date on the 1^st Notice and continues until violation has been corrected.

$ 150.00 Additional Fine with 3^rd Notice

$ 250.00 Additional Fine with the 4^th Notice (Hearing to be scheduled with Board of Directors)

$ 500.00 Additional Fine if Member does not attend Hearing

NOTICE PROCEDURES:

1^st Notice – to be sent by U.S.Mail

a. Notice to contain information regarding the appeal process.

b. Gives the Owner 14 days from date on Notice to respond.

c. Schedules a hearing date with the Architectural Committee.

d. Requires a written action plan that corrects the violation with a completion date. If written action plan is accepted, hearing will be waived.

e. An appeal to the Board of Directors of a decision by the Architectural Committee must be filed within 14 days of the date of the decision.

2^nd Notice, if required – to be sent by Certified Letter

a. The non-compliance fine per schedule is imposed.

b. The daily fine starts on the 15^th day after the date on the 1^st Notice (or on the day after an appeal hearing with the Board of Directors if the appeal is rejected) and continues until the violation has been corrected If no response within 14 days from date on 2^nd Notice, a 3^rd Notice will be sent.

3^rd Notice, if required – to be sent by Certified Letter:

a. The daily fine continues.

b. An additional fine per schedule is imposed.

c. If violation not corrected, the file shall be referred to the Board of Directors for a 4^th Notice.

4^th Notice, if required – to be sent by Certified Letter:

a. Schedules a hearing with the of

Board Directors, because the Owner still

does not comply or did not attend the

hearing with the Architectural Committee.

b. The daily fine continues.

c. This notice will be sent at least ten (10) days prior to the hearing and imposes an additional fine per schedule.

d. If the Owner does not attend the Board hearing, the Board may impose an additional fine per schedule and turn the case over to the Association’s Attorney for legal action.

e. Any liens placed on a property or person will result in the Association filing suit for any and all permissible legal actions against the Owner in Court.

Fine Policy and Schedule Revision Approved by Board of Directors 10-14-2008