WHEREAS, the Amended and Restated Dedication, Protective Restrictions, Covenants, Limitations, Easements, and Approvals of the Plat of Lofton Woods (Covenants), Section 7.1, provides that Lofton Woods Community Association Inc. (Association), has the right to enforce the Covenants; and

WHEREAS, the Amended and Restated Bylaws of Lofton Woods Community Association, Inc. (Bylaws), Section 3.7, gives the Board of Directors (Board) the power to assess fines and penalties against Owners; and

WHEREAS, Section 4.2 of the Covenants allows assessments to be established for the welfare of Lofton Woods residents; and

WHEREAS, Section 4.6 of the Covenants requires that all assessments be fixed at a uniform rate for all lots and allows those assessments to be collected monthly or yearly; and

WHEREAS, the Board believes that enforcement of the Covenants is an important way to help Owners maintain or increase the value of their Lofton Woods property;

NOW, THEREFORE, BE IT RESOLVED: The Board will assess a uniform fine of $10 per day against all Owners whose lots contain a structure that is in violation of the Covenants. Said fine will be applied only if the violation remains after: all proper action has been taken as outlined in Section 5 of the Covenants -- Architectural Control; the Owner has been given 30 days to remove the violation; and, the Owner has been notified of the date when the fine will begin.

BE IT FURTHER RESOLVED: Said fine will apply only to violations that occur after the Amended Covenants and Amended Bylaws were approved in 1998. Violations in existence prior to that time are governed by Section 6.1.4 of the Covenants.

Adopted by the Board of Directors of Lofton Woods Community Association, Inc., on this 11th day of June, 2005.