COMPLIANCE & ARBITRATION

ARTICLE XI - COMPLIANCE AND ARBITRATION

Section 11.01. Compliance with Rules of the Association Pursuant to This Declaration and the By-Laws. Should any Owner, members of such Owner's family, his employees, guests, lessees, licensees or other invitees fail to comply with any of the provisions of this Declaration, the By-Laws, the Certificate of Incorporation or the rules and regulations, and as such may be amended from time to time, the following procedures may be followed to obtain compliance:

a. A committee of three (3) people shall be appointed by the Board of Directors and designated the Compliance Committee to serve at the pleasure of the Board of Directors.

b. The Compliance Committee shall first undertake to obtain compliance informally, by discussing the violation or violations with the violator, and seeking to obtain future compliance or cessation of the ongoing violation or violations.

c. Should this informal procedure prove unsatisfactory or not secure future compliance, the Compliance Committee shall then send a written notice to the violator, and if such person is not an Owner, to the Owner who brought such person onto the Property, notifying him of the claimed violation, requesting, as the case may be, either a correction of the violation, or an assurance that a similar violation will not occur in the future. Such notice shall establish a date for compliance.

d. Should such notice obtain the requested compliance, that will dispose of the matter, unless the same or a similar violation thereafter reoccurs.

e. Should such notice not obtain the requested compliance within the time requested, the Compliance Committee shall then be authorized, at its discretion, to establish a monetary and/or non-monetary penalty, the amount and/or severity of which shall be reasonably related to the violation and to the aim of deterring similar violations in the future by the same or any other person. Such fine shall become a binding personal obligation of the violator, if an Owner, or the Owner responsible for such violator, if an Owner, or the Owner responsible for bringing such violator onto the property. Failure to correct the condition or situation which leads to the first fine, for a period of twenty (20) days after the initial fine becomes finally due and payable, shall constitute a second offense. Notice of the imposition of such fine or fines shall be by certified mail, return receipt requested, to the violator and/or the Owner responsible for such violator, and shall be paid to the Association within (10) days following the date of the mailing of such notice, unless the violator, if an Owner, or the Owner responsible for such violator, requests the right to arbitrate the matter before the Arbitration Committee, as hereinafter set forth within said ten (10) days. Should the fine not be paid within the ten (10) days, or if a request to arbitrate is not received within the said ten (10) days, the amount of the fine shall be added to the Owner’s Assessment on the first of the month following the termination of the ten (10) day period above set forth, and shall be collectible as such.

f. The Arbitration Committee shall consist of the President of the Board of Directors, as Chairman of the Committee, and two (2) other members of the Board of Directors who shall be appointed by the Board of Directors to serve at the pleasure of the Board of Directors.

g. Should the violator, or the Owner responsible for the violator, request the right to arbitrate the imposition or amount of a fine, as above set forth, he shall do so in writing, directed to the Board of Directors, within ten (10) days of his receipt of notice sent by certified mail, return receipt requested, of the imposition of said fine. The Board of Directors shall promptly forward the same to the Arbitration Committee, which shall meet within twenty (20) days thereafter, on notice to the alleged violator, to hear and dispose of the matter. At such hearing the alleged violator and/or the Owner responsible for such violator, and one (1) or more members of the Compliance Committee may be present and be heard. A decision on the matter shall be made by the Arbitration Committee, by a majority vote, within ten (10) days following said hearing, and shall be promptly communicated to the alleged violator and/or the Owner responsible for such violator, in writing. If the decision of the Arbitration Committee is to uphold the determination of the Compliance Committee, the provision relating to the payment and enforcement thereof set forth in Subparagraph e. above shall apply. If their decision is in favor of the alleged violator, no fine will be imposed. The decision of the Arbitration Committee shall be final and binding upon all parties.

h. In the event the violator is a person other than an Owner or member of such Owner’s immediate family, copies of all notices required to be given to the violator under this Declaration, the By-Laws or the Certificate of Incorporation shall also be given to the Owner of the Home responsible for such violator.