Suspension of Privileges/Fines

Vo1 STATE OF TEXAS 05035542 DFR 2821 731 COUNTY OF HAYS Rules and Regulations: Elliott Ranch Homeowners Association, Inc. The Amended and Restated Declaration of Covenants and Restrictions for Elliott Ranch was recorded in Volume 1512, Page 913 of the Official Public Records of Hays County Texas, (together with all subsequent amendments, the “Declaration') and gives the board of directors of the association the power to adopt rules governing the property described in the Declaration. The Board has adopted the following rules: Section 1. Suspension of Privileges/Fines. In the event of a violation of the Declaration, Bylaws, or any rules and regulations of the Association, the Board of Directors, acting on behalf of the Association, in addition to any other remedies provided by the Declaration, Bylaws, or rules and regulations and remedies available pursuant to State statute or other law, may (1) suspend or condition the right of an Owner and any tenants, occupants, or guests to use of facilities (including all or part of any common areas) owned, operated, or managed by the Association; (2) suspend an Owner's voting privileges in the Association as a Owner, as further provided in the Deciaration and Bylaws; (3) record a notice of non-compliance encumbering the Lot; (4) levy a damage assessment against a Lot for damages caused by Owners' actions in violation of the Declaration, Bylaws, or Rules; (5) levy late fees, collection costs and/or deed restriction enforcement costs (including attorneys fees) against a Lot , and (6) assess a fine against the Lot Owner and Lot for the violation of Owner, his tenants, occupants, or guests in an amount to be determined by the Board of Directors. The Association must comply with any notice requirements of state law. Owners are responsible for all violations of their occupants, tenants, guests, agents and invitees. Any amounts charged to an Owner under these procedures may be collected in the same manner as regular assessments under the Declaration, including lien and foreclosure rights to the extent permitted by law. It is the owners' responsibility to notify the association, in writing, when a violation has been cured so as to stop any fines from being assessed. Fines may continue to be assessed until the association receives this notice from the owner. Section 2. Attornevs Fees. The Association may assess reasonable attorneys fees to an Owner's account for nonpayment of amounts due or other violations of the Declaration, Bylaws, or rules. Section 3. Non Waiver. The failure of the Association to enforce any provisions of the Declaration, Bylaws, rules, or procedures shall not constitute a waiver of the right to enforce the same thereafter. All remedies in the Declaration, Bylaws, and rules are cumulative and not exclusive. Section 4. Application of Payments. The Association in its discretion and without notice to the Owner may apply amounts received from Owners to non-assessment items or other amounts due and owing the association regardless of Owners' notations on checks or otherwise. Elliott Ranch Homeowners Association, Inc.

By: 05T35542OPR 732 PRES/DET Title: STATE OF TEXAS COUNTY OFY&VIS This instrument was acknowledged before me on D(emiQek 2 ,o5... by Notary Public for the State of Texas Printed name of notary My commission expires After recording, please return to: HALE Niemann & Niemann, L.L.P. 1122 Colorado St., Suite 313 Austin, Texas 78701 EXPIRES 2009 FileServerCLIENTS Ell1ottRanch ViolationProcedure doc Filed for Record in: Hays County (n: Dec 07:2005 at 04:19P Docunent Nunter : 05035542 Amount : 20.00 Receipt Nunber - 137841 Rose Robinson: Deputy Lee Curlisiet County Cierk Hays County