III. VIOLATION OF RULES, REGULATIONS, BYLAWS, AND DECLARATION

Reporting a Violation

Any Lot Owner or occupant may report a violation of the Rules and Regulations, Bylaws, or Declaration in writing to the Board of Directors through the Management Agent. The alleged violation shall be described as completely as possible, giving an account of what happened, the names of those involved, Lot numbers or addresses if known, and the time and place of occurrence. The Board of Directors or Chairperson of the appropriate Committee may also initiate such action when violations are brought to their attention.

Dispute Resolution Procedure. The Board or its designated committee shall not impose a fine, suspend voting rights (unless the suspension is related to the Lot Owner's failure to provide a current address or a statement of lien has been filed against the Lot and the lien has not been satisfied), or infringe upon any other rights of a Lot Owner or other occupant for violation of the Declaration, Bylaws, or the Rules and Regulations until the following procedure is followed:

(a) Demand Written demand to cease and desist from an alleged violation shall be served upon the alleged violator specifying: (1) the alleged violation; (2) the action required to abate the violation; and (3) a time period, not less than ten (10) days, during which the violation may be abated without further sanction if the violation is a continuing one, or a statement that any further violation of the same rule may result in the imposition of sanction after notice and hearing if the violation is not a continuing one.

(b) Notice Within twelve (12) months of such demand, if the violation continues past the period allowed in the demand for abatement without penalty, or if the same rule is subsequently violated, the Board shall serve the alleged violator with written notice of a hearing to be held by the Board The notice shall contain: (1) the nature of the alleged violation; (2) the time and place of the hearing, which time shall be not less than ten (10) days from the giving of the notice; (3) an invitation to attend the hearing and produce any statement, evidence, and witnesses on his or her behalf and (4) the proposed sanction to be imposed.

(c) Hearing At the hearing, the alleged violator has the right to present evidence and present and cross-examine witnesses. The hearing shall be held in executive session unless the violator demands a public hearing pursuant to a notice affording the alleged violator a reasonable opportunity to be heard. Prior to the effectiveness of any sanction hereunder, proof of notice and the invitation to be heard shall be placed in the minutes of the hearing. This proof shall be deemed adequate if a copy of the notice, together with a statement of the date and manner of delivery, is entered by the person who delivered such notice. The notice requirements shall be deemed satisfied if the alleged violator appears at the hearing. The minutes of the hearing shall contain a written statement of the results of the hearing and the sanction, if any, imposed. A decision by the Board of Directors pursuant to these procedures shall be appealable to the Courts of Harford County, Maryland.

In the event the hearing is conducted by a designated committee, the Board may elect, upon the written application of the violator, to review the decision of the designated committee and affirm, amend or reverse the committee's decision as the Board, in its sole discretion, deems appropriate. Any such action by the Board shall be entered in the minutes of the meeting at which the action was taken. A decision by the Board of Directors pursuant to these procedures shall be appealable to the Courts of Harford County, Maryland.

(d) Owner's Failure to Comply If any Lot Owner fails to comply with the Declaration, Bylaws, Rules and Regulations, or a decision rendered pursuant to this Section, the Lot Owner may be sued for damages caused by the failure or for injunctive relief, or both, by the Association or by any other Lot Owner. The prevailing party in any such proceeding is entitled to an award of all costs and attorney's fees actually incurred.

(e) Effect of Failure to Enforce Provision The failure of the Association to enforce a provision of the Declaration, Bylaws, or the Rules and Regulations on a given occasion is not a waiver of the right to enforce that provision on any other occasion.

If, after notice and hearing as stated herein, the Board or its designated committee shall determine that there has been a violation of the Declaration, Bylaws or Rules and Regulations, it shall have the power to impose sanctions against the Lot Owner, including reasonable monetary fines as stated herein, and as shall be determined by the Board or its designated committee. In the event the fines are not paid, such a fine will be considered a lien against the Lot belonging to such Owner, and shall be collectible in like manner as the lien against such Lot for annual and special assessments as provided for in the Declaration. The Association shall be entitled to an award of all costs and attorney's fees actually incurred to collect the amount due hereunder.

Penalties and Fines

Suggested Penalties and Fines for some offenses are listed below as well as in the individual Rules and Regulations. The hearing panel will use these suggested Penalties and Fines as a guideline, but may vote to change the penalty or levy another fine in the event it determines facts of a nature it deems sufficient to warrant a different sanction.

Violation of Declaration and Rules for architectural control

a. Improvement to the Property including but not limited to the installation of fences, sheds and decks, without prior approval of the HOAAC - $100.00 fine plus $5.00 per day from the date of violation until compliance.

b. Modification to the exterior or any improvements without prior approval of the HOAAC - $100.00 fine plus $5.00 per day from the date of violation until compliance.

a. Failure to properly remove pet waste from the Lots and Common Areas - $30.00 fine plus $5.00 per day from date of violation until compliance.

Violation of Declaration and Rules on Parking and Vehicles

a. Noncompliance with parking restrictions on the Premises, including the county access roads, promulgated by the Board of Directors - Vehicle towed at owner's expense.

b. Impeding or preventing access to another parking space, entrances or exits - Vehicle towed at owner's expense.

c. Storing vehicles or maintaining improperly registered or inspected vehicles on the premises Vehicle towed at owner's expense.

d. Performing major repairs or maintenance on vehicles on the Premises in violation of the Declaration - $100.00 per incident.

a. Use of Lot for any purpose other than residential use - $500.00 fine plus $50.00 per day from date of violation until cured.

b. Failure to dispose of trash properly - $10.00 per incident.

c. Posting of unauthorized signs - $10.00 per day until removed.

Cost of repairs plus a fine equal to the amount of the repair for intentional or negligent damage to Common Areas.

a. Failure to maintain any building, structure or other improvement on a Lot - $100.00 fine plus $10.00 fine per day.

Penalties will be assessed on a case by case basis in the Board's discretion.