WHEREAS, Article IX. Section 1 of the Bylaws creates an assessment obligation

for the owners of units in Chestnut Woods Condominium (hereinafter the "Condominium.'),

which is a continuing lien on the unit and a personal obligation of the owner; and,

WHEREAS, Article IX. Section 7 of the Bylaws grants the Board of Directors the

authority to enforce payment of assessments by means of, inter alia, foreclosing the lien

against any unit for which assessments are not paid or bringing an action at law against the

owner personally obligated to pay the same; and,

WHEREAS, Article IX. Section 6 of the Bylaws provides that upon default in the

payment of any one or more monthly installments, the Board of Directors may accelerate

the entire unpaid balance for the remainder of the fiscal year; and,

WHEREAS, there is a need to establish orderly procedures for the billing and

collection of said assessments; and,

WHEREAS, the Board of Directors desires to establish these procedures in

conformity with the Declaration, the Bylaws, Title 11 of the Real Property Article of the

Annotated Code of Maryland (hereinafter the "Maryland Condominium Act"), the

Maryland Contract Lien Act, and as otherwise provided by law.

NOW, THEREFORE, BE IT RESOLVED THAT the Board of Directors, on behalf

of Chestnut Woods Condominium duly adopts the following assessment and collection

procedures:

1. ASSESSMENTS: Each owner's annual assessment is due on the first day of

January; however, for the convenience of owners, the annual assessment may be paid in

equal monthly installments on the first day of each month, unless otherwise permitted by the

Board of Directors.

Notices; documents and all correspondence relating to assessments shall be mailed to the

address which appears on the books of the Condominium. It is each owner's responsibility

to inform the Condominium's managing agent, in writing, of any address change.

2. DELINOUENCY: If an owner chooses to pay the annual assessment by means

of the monthly payment plan, an owner's account is delinquent if the monthly installment is

not received by the Condominium's managing agent within fifteen days after the installment

due date. If payment in full is not received within fifteen (15) days after written notice of

such default, the owner will not be permitted to utilize the monthly payment plan for the

remainder of the fiscal year and in that event the owner's entire annual assessment will

become immediately due and payable.

3. LATE FEES AND INTEREST: A delinquent account which is not paid within

fifteen days after the installment due date win be assessed a late fee charge of fifteen dollars

($15.00) or one tenth of the total amount of any delinquent assessment or installment,

whichever is greater. A late fee shall be charged on the monthly assessment each month that

the account remains delinquent. A delinquent account shall bear interest on the unpaid

balance from the due date, until paid, at the rate of eighteen percent (18%) per annum. In

addition, a $25.00 returned check charge and any related bank charges will be assessed

against the account of the unit owner responsible for payment if the payment is returned.

4. LATE NOTICES: If full payment of an assessment is not received by the

Condominium's managing agent within fifteen (15) days after the due date, the managing

agent will send a delinquency notice to the owner by first class mail requesting immediate

payment, advising the owner of the late fee and advising the owner that interest has begun to

accrue on the unpaid balance at the rate of eighteen percent (18%) per annum. The late

notice shall also inform the owner that if payment is not received within fifteen (15) days of

the date of the letter, the owner's assessment will be accelerated through the fiscal year and

the account will be forwarded to the Condominium's attorney for collection.

5. NOTICE OF INTENI TO CREATE LIEN AND ATTORNEY'S FEES:

If an account is forwarded to the Condominium's attorney for collection, a Notice of Intent to

Create a Lien will be forwarded to the delinquent owner by means of first class and certified

or registered mail, return receipt requested, to the owner's address on the Condominium's

books or by personal delivery or as set forth in the Maryland Contract Lien Act.

The Notice of Intent to Create a Lien will inform the delinquent owner of the amount of the

outstanding balance, including all past due assessments, interest, late fees, costs of collection

and all attorney's fees actually incurred. The Notice of Intent to Create a Lien will conform

with the requirementsof the Maryland Contract Lien Act and all other applicable laws.

6. LEGAL ACTION: Once a delinquent owner has been served with the Notice of

Intent to Create a Lien, the delinquent owner must, within 30 days of service of the lien

warning letter, either forward payment in full or file a complaint in the Circuit Court for

Baltimore County to determine whether probable cause exists for the Condominium to file a

lien against the delinquent owner's property .If the delinquent owner does not forward full

payment or file a complaint, the Condominiwn will file a lien against the delinquent owner's

property after the 30 day period has expired.

Once a lien has been filed, the Condominium's attorney will proceed with further legal

action, including but not limited to, foreclosing on the owner's property, and/or filing a

lawsuit against the owner in order to collect the past due amounts owed the Condominium.

7. PAYMENTS CREDITED: Payments received from an owner will be credited to

the outstanding balance in the following order:

a. Court costs, attorney's fees and other costs of collection.

b. Fines, late fees or accrued interest, as applicable.

c. Special assessments.

d Annual assessments.

8. PARTIAL PAYMENTS: In the event an owner attempts to make a payment of

less than all monies due and owing the Condominium after collection proceedings have

commenced, the Condominium's attorney will send a letter by first class mail to the owner

advising the owner that the payment was applied in accordance with Paragraph 7, hereof.

and that his or her account remains delinquent as to all remaining monies owed to the

Condominium. The Condominiwn's retention of the partial payment does not constitute a

waiver of the Board's authority to foreclose on the owner's property or take action against

the owner to collect the outstanding balance.

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