RESOLUTION OF THE
MILL IRON 5 RANCH ESTATES SUBDIVISION HOMEOWNER'S ASSOCIATION
ADOPTING POLICY AND PROCEDURE FOR
COLLECTION OF UNPAID ASSESSMENTS

SUBJECT:  Adoption of a policy and procedure regarding the collection of unpaid assessments.

PURPOSE:  To provide notice of the Association's adoption of a uniform and systematic policy and procedure to collect assessments and other charges of the Association.

AUTHORITY:  The Declaration, Articles of Incorporation and Bylaws of the Association and Colorado law.

EFFECTIVE DATE:  _11-18-2007___

RESOLUTION:  The Board of Directors, on behalf of the Association, hereby adopts the following:

1.  Due Dates. The annual common expenses assessments ("Assessment") shall be due and payable once a year on such date as determined in the sole discretion of the Board. Assessments or other charges not paid in full to the Association within 30 days of the due date shall be considered delinquent and accrue late fees and interest pursuant to Paragraph 3.

2.  Receipt Date. The Association shall post payments on the day that the payment is received by the Association.

3.  Late Charges. The Association may impose on a monthly basis a $30.00 late fee for each Owner who fails to timely pay his/her Assessment within 30 days of the due date. In addition, the Association may impose interest from the due date at a rate of 18% per annum for each Owner who fails t9 pay his/her Assessment within 30 days of the due date.

4.  Personal Obligation for Late Charges.	The late charge shall be the personal obligation of the Owner(s) of the unit for which such Assessment is unpaid. All late charges shall be due and payable immediately, without notice, in the same manner as provided by the Declaration for payment of assessments.

	5.  Return Check Charges. In addition to any and all charges imposed under the Declaration, Articles of Incorporation and Bylaws, the Rules and Regulations of the Association or this Resolution, a reasonable fee, not to exceed $20.00, shall be assessed against an Owner in the event any check or other instrument attributable to or payable for the benefit of such Owner is not honored by the bank or is returned by the bank for any reason whatsoever, including but not limited to insufficient funds. This returned check charge shall be a "common expense" for each Owner who tenders payment by check or other instrument, which is not honored, by the bank upon which it is drawn. Such return check charge shall be due and payable immediately, upon demand. Notwithstanding this provision, the Association shall be entitled to all additional remedies as may be provided by applicable law. Returned check charges shall be the obligation of the Owner(s) of the unit for which payment was tendered to the Association. Returned check charges shall become effective on any instrument tendered to the Association for payment of sums due under the Declaration, Articles, Bylaws, Rules and Regulations or this Resolution after the date adopted as shown above. If two or more of an Owner's checks are returned unpaid by the bank within any (fiscal) year, the Association may require that all of the Owner's future payments, for a period of one (1) year, be made by certified check or money order. This return check charge shall be in addition to any late fees or interest incurred by an Owner. Any returned check shall cause .an account to be delinquent if full payment of the Assessment is not timely made within 30 days of the due date.

6.  Attorney Fees on Delinquent Accounts. As an additional expense permitted under the Declaration and by Colorado law, the Association shall be entitled to recover its reasonable attorney fees and collection costs incurred in the collection of assessments or other charges due the Association from a delinquent Owner. The reasonable attorney fees incurred by the Association shall be due and payable immediately when incurred, upon demand.

7.  Application of Payments. All sums collected on a delinquent account that has been turned over to the Association's attorney shall be remitted to the Association's attorney until the account is brought current. All payments received on account of any Owner or the Owner's property (hereinafter collectively "Owner"), shall be applied to payment of any and all legal fees and costs (including attorney fees), expenses of enforcement and collection, late charges, returned check charges, lien fees, and other costs owing or incurred with respect to such Owner pursuant to the Declaration, Articles, Bylaws, Rules and Regulations, or this Resolution, prior to application of the payment to any special or regular assessments due or to become due with respect to such Owner.

8.  Collection Process.

(a) After an Assessment or other charges due to the Association becomes more than 30 days delinquent, the Association shall send a written notice ("First Notice") of non-payment, amount past due, notice that late charges have accrued and request for immediate payment.

(b) After an Assessment or other charges due to the Association becomes more than 60 days delinquent, the Association shall send a second written notice ("Second Notice") of non-payment, amount past due, notice that late charges have accrued, notice of intent to file a lien and request for immediate payment.

(c) After an Assessment or other charges due to the Association becomes more than 90 days delinquent, the Association shall turn the account over to the Association's attorney for collection. Upon receiving the delinquent account, the Association's attorneys shall file a lien and send a letter to the delinquent Owner demanding immediate payment for past due assessments or other charges due. Upon further review, the Association's attorney may file a lawsuit. If a judgment or decree is obtained, including without limitation a foreclosure action, such judgment or decree shall include reasonable attorney's fees together with the cost of the action and any applicable interest and late fees.

(d) In addition to the steps outlined above, the Association may elect to suspend the voting rights of any Owner whose account is past due at the time of such voting.

9.  Collection Procedures/Time Frames. The following time frames shall be followed for use in the collection of Assessments and other charges.

Due Date	Once a year, on a date	
(date payment due)	as determined by the	
	Board	
First Notice	30 days after due date	
Second Notice	60 days after due date	
Delinquent account	90 days after due date	
turned over to		
Association's attorney;		
Lien filed; Demand		
letter sent to Owner.		

The attorney is to consult with the Association as necessary to determine if payment has been arranged or what collection procedures are appropriate.

10.  Certificate of Status of Assessment. The Association shall furnish to an Owner or such Owner's designee upon written request, first class postage prepaid, return receipt, to the Association's agent, a written statement setting forth the amount of unpaid assessments currently levied against such Owner's property for a reasonable fee. However, if the account has been turned over to the Association's attorney, such request may be handled through the attorney.

11.  Bankruptcies and Foreclosures. Upon receipt of any notice of a bankruptcy filing by an Owner, or upon receipt of a notice of a foreclosure by any holder of an encumbrance against any unit within the Association, the Association shall notify the Association's attorney of the same and turn the account over to the Association's attorney, if appropriate.

12.  Use of Certified Mail/Regular Mail. In the event the Association shall cause a collection or demand letter or notices to be sent to a delinquent Owner by regular mail, the Association may also cause, but shall not be required to send, an additional copy of that letter or notice by certified mail.

13.  Referral of Delinquent Accounts to Attorneys. Upon referral to the Association's attorney, the attorney shall take all appropriate action to collect the accounts referred. After an account has been referred to an attorney, the account shall remain with the attorney until the account is settled, has a zero balance or is written off. The attorney, in consultation with the Association, is authorized to take whatever action is necessary and determined to be in the best interests of the Association, including, but not limited to:
a.  Filing of a suit against the delinquent Owner for a money judgment;
b.  Instituting a judicial foreclosure action of the Association's lien;
c.  Filing necessary claims, documents, and motions in bankruptcy court in order to protect the Association's interests; and
d.  Filing a court action seeking appointment of a receiver.

All payment plans involving accounts referred to an attorney for collection shall be set up and monitored through the attorney.

Upon referral of any matter to the Association's attorney, the Association shall pay the attorney's usual and customary charges as well as any costs incurred by the attorney on the Association's behalf, promptly upon receipt of the monthly invoice from the attorney.

14.  Appointment of a Receiver. The Association may seek the appointment of a receiver if an Owner becomes delinquent in the payment of assessments pursuant to the Declaration and Colorado law. A receiver is a disinterested person, appointed by the court, who manages the rental of the property, collects the rent and disburses the rents according to the court's order. The purpose of a receivership for the Association is to obtain payment of current assessments, reduce past due assessments and prevent the waste and deterioration of the property.

15.  Judicial Foreclosure. The Association may choose to foreclose on its lien in lieu of or in addition to suing an Owner for a money judgment. The purpose of foreclosing is to obtain payment of all assessments owing in situations where either a money judgment lawsuit has been or is likely to be unsuccessful or other circumstances favor such action.

16.  Waivers. The Association is hereby authorized to extend the time for the filing of Jaw suits and liens, or to otherwise modify the procedures contained herein, as the Association shall determine appropriate under the circumstances.

17.  Communication with Owners. All communication with a delinquent Owner shall be handled through the Association's attorney once a matter has been referred to the attorney. No member of the Board of Directors shall discuss the collection of the account directly with an Owner after it has been turned over to the Association's attorney unless the attorney is present or has consented to the contact.

18.  Defenses. Failure of the Association to comply with any provision in this Policy shall not be deemed a defense to payment of assessment fees or other charges, late charges, return check charges, attorney fees and/or costs as described and imposed by this Policy.

19.  Definitions. Unless otherwise defined in this Resolution, initially capitalized or terms defined in the Declaration shall have the same meaning herein.

20.  Supplement to Law. The provisions of this Resolution shall be in addition to and in supplement of the terms and provisions of the Declaration and the law of the State of Colorado governing the Project.

21.  Deviations. The Board may deviate from the procedures set forth in this Resolution, if approved by all Board members with documentation of such approval, and if in its sole discretion such deviation is reasonable under the circumstances.
 
22. Amendment. This Policy may be amended from time to time by the Board of Directors.

PRESIDENT'S CERTIFICATION:

The undersigned, being the President of the Mill iron 5 Ranch Estates Subdivision Homeowner's Association a Colorado nonprofit corporation, certifies that the foregoing Resolution was adopted by the Board of Directors of the Association, at a duly called and held meeting of the Board of Directors on _11/18/2007 _ and in witness thereof, the undersigned has subscribed his/her name.

MILLIRON 5 RANCH ESTATES SUBDIVISION HOMEOWNER'S ASSOCIATION

By: _s/ Denise Flores______  President