SONTERRA PROPERTY OWNERS ASSOCIATION, INC.

Policy Related to Delinquencies

The following policies have been adopted by the SONTERRA PROPERTY OWNERS ASSOCIATION, INC. (the “Association”):

Recitals

Whereas, the Board of Directors of the Association has the authority to adopt rules and regulations regarding the use of the properties located within the Sonterra subdivision (“Sonterra”) and subject to the Declaration of Covenants recorded at Volume 3418, Page 1980, Real Property Records of Bexar County, Texas, as amended from time to time (the “Declaration”);

Whereas, the Board of Directors of the Association wishes to establish certain policies related to the use of said properties by owners having delinquent assessments;

Now Therefore, the Board of Directors of Sonterra has duly adopted the policies as set out herein.

Rules and Penalties

1.                  General Rules.  In accordance with the terms of the Declaration:

(a)        assessments are due and payable thirty (30) days after billing;

(b)        all unpaid assessments shall bear interest at the rate of 3% per quarter until paid;

(c)        if the account is referred to an attorney for collection, all costs of collection including, court costs and reasonable attorney’s fees shall be added to the assessment and shall bear interest at the rate of 12% per annum until paid; and

(d)        the Association may bring an action against the owner personally obligated to pay the delinquent assessment or may bring an action to foreclose the lien against the property subject to the assessment.

2.         Rules Related to Use of Properties.  If assessments are not paid when due for two successive calendar quarters, or are in excess of $500.00, the following rules related to use of the Sonterra properties shall apply until all such delinquent assessments including, without limitation, any costs of collection are fully paid:

(a)        the Association will suspend availability of the permanent guest list for gate entry for such owner and/or resident;

(b)        the Association will suspend acceptance of the names of guests for gate entry for such owner and/or resident;

(c)        the owner and/or resident will have their access number removed from the gated keypad entry system, if applicable, for their subdivision entry system;

(d)        the owner and/or resident will have their bar code number removed from laser tag scanner if access is through the main gate and such owner and/or resident will be required to enter through the guest lane at the main entry gate;

(e)        any guests of such owner and/or resident will be allowed access through the entry gate only when such owner and/or resident comes to the entry gate and notifies the guard at the main gate, or by using the entry transmitter/clicker of such owner and/or resident; and

(f)         the owner and/or resident must still comply with all Association governing documents, covenants, restrictions, rules and policies.

3.         Non-Exclusive Remedies.  The rules and regulations contained herein are in addition to, and not in substitution of, all other applicable rules and regulations or any applicable restrictive covenants, all of which remain in full force and effect, and to all other rights and remedies to which the Association may otherwise be entitled.

4.         Violation by Resident, Tenant, or Agent.  A violation by a resident, tenant, guest, or agent of the owner shall be treated as a violation of the owner of the property. 

5.         No Waiver.  Any failure of the Association to seek enforcement or compliance with this policy shall not be deemed a waiver of the rights of the Association to seek enforcement or compliance at any time thereafter.

This policy was duly adopted by the Board of Directors of the Sonterra Property Owners Association, Inc., on the ____ day of _____________, 2005.

SONTERRA PROPERTY

OWNERS ASSOCIATION, INC.

                                                                        By:  ______________________________

                                                                                    SANDRA L. WHITLEY, President

STATE OF TEXAS                 §

§

COUNTY OF BEXAR             §

This instrument was acknowledged before me this ________ day of _____________________, 2005, by SANDRA L. WHITLEY, President of the Sonterra Property Owners Association, Inc., a Texas corporation, on behalf of said corporation.

_______________________________

                                                            Notary Public, State of Texas

After Recording, Return To:

Sonterra Property Owners Association, Inc.

19210 Huebner Road, Suite 102

San Antonio, Texas 78258